In the last budge announcement, Rishi Sunak (Chancellor of the Exchequer) confirmed that the Coronavirus Business Interruption Loan Scheme (CBILS) was too close. As of the 31st March 2021, businesses are not able to apply for funding under this government backed scheme.
As of 6th April 2021, the government introduced the Recovery Loan Scheme (RLS), please see the table below showing a snapshot of the main differences and similarities.
Features of the Recovery Loan Scheme
No minimum turnover requirement
Unlike the Coronavirus Business Interruption Loan Scheme, the Recovery loan Scheme does not require you to have a turnover of more than £200,000, meaning that it could be a good option for smaller or newer businesses that are financially viable, but did not hit the turnover threshold for the Coronavirus Business Interruption Loan Scheme.
No personal guarantee
No personal guarantee will be required if you are borrowing below £250,000, thus enabling business owners to obtain finance without the constraints of a personal guarantee.
Wider range of borrowing
Business can apply from between £25,001 up to £10m, subject to financial circumstance and qualifying criteria.
Please note that your business will be liable for 100% of the debt. When taking out funding through the Recovery Loan Scheme (RLS), the business is liable for the full loan amount.
If the business is unable to repay, the scheme provides a partial guarantee to the lender, not to the business.
The Funding Store have a panel of Recovery Loan Scheme (RLS) accredited lenders that can assist with your search for the right business finance in these difficult and uncharted times.
Once you have decided what best suits your business needs then why not contact us on 01908 880420 or request a call back at a more convenient time.