In association with Braemar Finance: Applications to the scheme remain open to COVID-impacted businesses until 30 June 2022

Government assistance is still available in the form of the Recovery Loan Scheme (“RLS”) and there is still time before it ends on 30 June 2022 to take advantage of the scheme by getting in touch with Braemar Finance – or another approved provider – without delay. 

In this short Q&A Braemar Finance answers the key questions about this scheme…

What is the RLS for?

The RLS supports access to finance for UK businesses as they continue to recover and grow following the COVID-19 pandemic and can be used for multiple business purposes, including managing cash flow, investment and growth. 

It’s designed to support businesses that can afford to take out additional finance and is even available to firms that have already taken out a CBILS, CLBILS or BBLS facility.

What are some of the key features? 

  • The maximum facility provided under the scheme is £2 million per business. Minimum facilities start at £1,000 for asset finance, and £25,001 for term loans.
  • Term loans and asset finance facilities are available from three months up to six years.
  • Businesses are required to meet the costs of interest payments and any fees associated with the RLS facility.
  • RLS gives the lender (Braemar Finance) a Government-backed guarantee against the outstanding balance of the facility. As the borrower, you are always 100% liable for the debt.
  • If you’re borrowing £250,000 or less, we won’t ask for any form of personal guarantee.
  • If you’re borrowing more than £250,000, the requirement for personal guarantees will be at our discretion; however the amount that can be covered under a personal guarantee via RLS is capped at a maximum of 20% of the outstanding balance of the RLS facility after the proceeds of business assets have been applied, and no personal guarantees can be held over Principal Private Residences.

Is my business eligible? 

There are a number of eligibility criteria – your firm must:

  • prove it has been impacted by COVID-19;
  • be UK-based;
  • have a viable business proposition;
  • have an annual turnover of no more than £45 million.

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