Applications are now open for the £75bn Recovery Loan Scheme (RLS), the government’s latest covid-19 support programme, which provides financial support to businesses across the UK as they recover following the coronavirus pandemic

The scheme opened for applications on 6 April 2021 and is available to businesses affected by the pandemic, including those who have already used existing loan schemes such as the Bounce Back Loan or Business Interruption Loan schemes.

The Recovery Loan Scheme has a funding pot of £75bn and will operate until 31 December 2021 and comes on top of various business grants available through local authorities to help companies through the initial phases of the end of lockdown.

The main stipulation is that the business must have been affected by Covid-19 and the finance can be used for any legitimate business purpose – including managing cashflow, investment and growth.

If a business has already borrowed from any of the other coronavirus loan schemes, the Recovery Loan Scheme is still available, although the amount borrowed under an existing scheme may in certain circumstances limit the amount available to borrow under RLS.

There is no turnover restriction for businesses accessing the scheme.

The Recovery Loan Scheme will initially be available through a number of lenders accredited by the British Business Bank. New lenders under the scheme will be listed on the British Business Bank website as they become accredited.

Accredited lenders include Bank of Scotland, Barclays, HSBC, NatWest, Lloyds Bank, Paragon, RBS, Santander, Skipton Business Finance, Yorkshire Bank and Clydesdale Bank.

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