The British Business Bank recently announced five accredited lenders will be part of the new Recovery Loan Scheme, and more lenders are coming soon ...
These five accredited lenders are the Bank of Scotland, Lloyds Bank, Royal Bank of Scotland, Coventry & Warwickshire Reinvestment Trust and NatWest. They will offer facilities up to £2m to businesses with a turnover of up to £45m. For any business under the Northern Ireland Protocol, the advance is limited to £1m instead.
I feel the RLS will be a very valuable funding source for some small businesses, but I think the money should be used for specific projects rather than just supporting cashflow. Anything that adds to the resilience of the business going forward would be ideal.
The thing to remember is that if a lender can offer a commercial loan on better terms then they probably will as the use of RLS is at the discretion of the lender.
Many businesses have faced challenges over the last few years. From the pandemic to soaring inflation, it is worrying how many SMEs are finding it difficult to secure lending. Ensuring you have access to funding sources in the near future will be of utmost importance to many.
This new iteration of the Recovery Loan Scheme will help many to recover and grow.
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