May 4, 2021
David Salamons


Zum Profil

Was ist es?

Das RLS soll Unternehmen helfen, nach der Pandemie und der Übergangszeit wieder auf die Beine zu kommen, sich zu erholen und zu wachsen, und bietet Unternehmen jeder Größe Kredite und andere Arten von Finanzierungen.

When did it launch?

06 April 2021

When does the scheme end?

31 December 2021, subject to review

Who can I get the loan from?

Lenders accredited by British Business Bank

How much can I apply for?

Term loans of up to £10m per business (£30m per group) on repayment terms up to 6 years (term loans and asset finance) and up to 3 years (overdrafts and invoice finance). Businesses will need to cover any arrangement fees and interest costs from the outset.

Is my business eligible?

Eligibility criteria include:

  • UK based, carrying out trading activity in the UK
  • Generate 50%+ turnover from trading activity in the UK
  • Covid-19 impacted.
  • Subject to individual credit assessment.

Who guarantees it?

A loan under the RLS is secured by a government-backed 80% guarantee.

Do I need to provide a guarantee?

less than £250k: no personal guarantee required.
more than £250k: lender has discretion to decide whether to require a personal guarantee but no recovery action can be taken over a Principal Private Residence and recoveries are capped at a maximum of 20% of the outstanding balance of the RLS facility after the proceeds of business assets have been applied.

What can I use the money for?

Any legitimate business purpose including, but not limited to, managing cashflow, or for investment and growth purposes.

How much interest will I need to pay?

Rates vary by lender but together, annual interest, the upfront fee, and other fees, cannot be more than 14.99%.

Can I take out more than one RLS product/facility?

Yes, subject to existing facilities and lender requirements.

Can I refinance existing CBILS/BBLS/CLBILS?

Yes, but note, there’s no Business Interruption Payment (BIP) under RLS so any remaining BIP entitlement will need to be foregone.

Can I refinance existing commercial facility?

Yes, in certain circumstances, provided your business fulfils the Scheme eligibility criteria.

Key differences between CBILS and RLS

Amount£50,000 – £5mUp to £10m
TermUp to 10 yearsUp to 6 years
Available to apply for nowNoYes (current deadline 31/12/2021)
Government pays 1st 12 months interestYesNo
Government pays upfront fee on your behalfYesNo
Minimum annual turnover£200k +No minimum

Contact us

David Salamons, Partner

Harriet Collins, Legal Counsel