Recovery Loan Scheme or “RLS”

As an accredited RLS lender we are able to offer term loan facilities from £250,000 to £10m to existing Shawbrook Bank clients directly impacted by Covid-19 as long as they are UK-based and can meet certain business requirements. Please speak to your Relationship Manager to find out more about this facility.

You can also view further details on this scheme below.

What is the Recovery Loan Scheme?

The Recovery Loan Scheme (RLS) launched on 6 April 2021 and supports access to finance for UK businesses as they recover and grow following the Covid-19 pandemic.

RLS aims to help businesses affected by Covid-19 and can be used for business purposes, including, managing cashflow, investment and growth. It is designed to support businesses that can afford to take out additional finance for these purposes. Businesses who have taken out a CBILS, CLBILS or BBLS facility are able to access the new scheme.

A key aim of the Recovery Loan Scheme is to improve the terms on offer to businesses, but if a lender can offer a business the choice of a commercial loan on better terms, without requiring the guarantee provided by the RLS, they should do so.

The Scheme will run until 31 December 2021, subject to review.

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Frequently Asked Questions

  • Up to £10m facility per business: The maximum amount of a facility provided under the scheme is £10m per business (maximum £30m per group).
  • Term length: Term loans are available from twelve months, for up to six years.
  • Interest and fees to be paid by the borrower from the outset: Businesses are required to meet the costs of interest payments and any fees associated with the RLS facility.
  • Access to multiple Covid-19 schemes: Businesses that have taken out a CBILS, CLBILS or BBLS facility are able to access the new scheme although the amount they have borrowed under a previous scheme may in certain circumstances limit the amount they may borrow under RLS.
  • Personal Guarantees: Personal guarantees are not permitted for facilities of £250,000 or less. Above £250,000 the maximum amount that can be covered by a personal guarantee is capped at a maximum of 20% of the outstanding balance of the RLS facility after the proceeds of business assets have been applied. No personal guarantees can be held over Principal Private Residences.
  • Guarantee to the Lender: The scheme provides the lender with a government-backed guarantee against the outstanding balance of the facility. The borrower always remains 100% liable for the debt.

To view the full range of features applicable to the RLS scheme and what might be offered by other lenders, please visit the BBB website.

  • Covid-19 impact: The borrower must confirm to the lender that it has been impacted by Covid-19.
  • UK-based: The borrower must be carrying out trading activity in the UK.
  • Viability test: The lender will consider that the borrower has a viable business proposition but may disregard any concerns over its short-to-medium term business performance due to the uncertainty and impact of Covid-19.
  • Credit and fraud checks for all applicants: Lenders will be required to undertake credit and fraud checks for all applicants. The checks and approach may vary between lenders.
  • Turnover limit: There is no turnover restriction for businesses accessing the scheme.

Businesses from any sector can apply, except the following: Banks, insurers and reinsurers (but not insurance brokers); public-sector bodies; and state-funded primary and secondary schools.

Different criteria apply for businesses with material trading in Northern Ireland.

We offer a term loan for existing Shawbrook business customers who meet the eligibility criteria and satisfy our underwriting assessment:

      • loan of between £250,000 and £10m
      • term between 1 and 6 years
      • funds must be deployed to support trading primarily in the UK
      • all-asset debenture securities are required

Please note you are responsible for the repayment of your loan. The RLS guarantee is provided to your lender and not to you.  You remain responsible for repaying the whole of this loan at all times.

If your business meets all the eligibility criteria, then the next step is to contact your Relationship Manager.

The British Business Bank has a range of guidance and resources available to all businesses, including content on managing your cashflow and a list of independent advice services. For more details, visit www.british-business-bank.co.uk/finance-hub/

Important Information

The Recovery Loan Scheme is managed by the British Business Bank on behalf of, and with the financial backing of, the Secretary of State for Business, Energy & Industrial Strategy. British Business Bank plc is a development bank wholly owned by HM Government. It is not authorised or regulated by the PRA or the FCA. Visit the British Business Bank Recovery Loan Scheme

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