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What is the Recovery Loan Scheme (RLS): Is my business eligible, how do I apply and what is my liability?

The Recovery Loan Scheme (RLS) is a Government initiative providing financial support for UK businesses who have been affected by Covid-19. Through this scheme, UK businesses are able to access finance of between £25,001 and £10 million to help them recover and grow. 

For lenders accredited under the scheme, the Government provides an 80% guarantee on each loan. 

Please note, when taking out a Recovery loan, the business is liable for the full loan amount. If the business is unable to repay, the scheme provides a guarantee to the lender, not to the business.

You can read more about the Recovery Loan Scheme on the British Business Bank’s website.

Is my business eligible?

To receive a loan from Funding Circle through the Government’s Recovery Loan Scheme (RLS), you’ll need to meet the following criteria:

  • Business has been impacted by coronavirus
  • Minimum of 2 years’ trading history
  • Must be a limited company or limited liability partnership (LLP)
  • Business is trading in the UK
  • Loan is for business purposes (ie. working capital or investment, and to support trading in the UK)

To help as many businesses as possible, we’ll look at a business' performance over a longer period of time to ascertain whether it has a viable business proposition regardless of the impact of Covid-19.

You can access the scheme  if you have a  Bounce Back Loan Scheme (BBLS), Coronavirus Business Interruption Loan Scheme (CBILS) or Coronavirus Large Business Interruption Loan Scheme (CLBILS) loan.

How do I apply for a Recovery loan?

You can apply for a business loan with us using our online form. We will then assess your business’ eligibility for the scheme, and may provide you with an offer if you meet the requirements.

What documents do I need to apply for a Recovery loan?

For us to credit assess your business, we may require you to send us the following documents:

Business bank statements for the last six months

They must show:

  • The Account name and (where possible) the registered address. These must match the business you create the loan application for.
  • The sort code and account number.
  • All daily transactions.

A history of a minimum of six months (with the most recent being within one month of your loan application date). If you can select an exact date range, be as up to date as possible.

Latest full unabbreviated accounts

This must include:

  • Profit and loss
  • Detailed profit and loss
  • Balance sheet information

If I’m offered a Recovery loan, what is my liability?

  • If you are offered a Recovery loan, your business is liable for the full loan amount. The Government’s guarantee is not provided to you
  • If you miss four contractual payments (i.e 90 days late from the date of your first missed repayment) then we will need to default the loan
  • Defaulting a loan is a last resort for us, as this will adversely affect your business’s credit rating
  • We will stay in contact with you throughout this period to help you with managing the arrears and will look to explore all other available options with you before reaching this stage
  • If we do have to default the loan, then we will seek full repayment of outstanding principal and contractual interest from the business
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