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Recovery Loan Scheme
SWIG Finance is an accredited Recovery Loan Scheme lender. Loans from £25,001 to £250,000 are available to support the recovery and growth of SMEs in the South West region that have been impacted by Covid-19.
What is the Recovery Loan Scheme?
The new iteration of the Recovery Loan Scheme (RLS) launched in August 2022. The Scheme has been designed to support access to finance for UK small businesses as they look to invest and grow. In addition, the Recovery Loan Scheme aims to improve the terms on offer to borrowers. Therefore, if a lender can offer a commercial loan on better terms, they will do so.
It should be noted that businesses that took out a CBILS, CLBILS, BBLS or RLS facility before 30 June 2022 are not prevented from accessing RLS from August 2022. Although in some cases it may reduce the amount a business can borrow.
Recovery Loan Scheme-backed facilities are provided at the discretion of the lender. Consequently, lenders will undertake their standard credit and fraud checks for all applicants.
RLS Scheme Features
– Up to £2m facility per business group: The maximum amount of a facility provided under the scheme is £2m per business group for borrowers outside the scope of the Northern Ireland Protocol, and up to £1m per business group for Northern Ireland Protocol borrowers.
Minimum facility sizes vary, starting at £1,000 for asset and invoice finance, and £25,001 for term loans and overdrafts.
– Term length: Term loans and asset finance facilities are available from three months up to six years, with overdrafts and invoice finance available from three months up to three years.
– Personal Guarantees: Personal guarantees can be taken at the lender’s discretion, in line with their normal commercial lending practices. Principal Private Residences cannot be taken as security within the Scheme.
– Guarantee is to the lender: The scheme provides the lender with a 70% government-backed guarantee against the outstanding balance of the facility after it has completed its normal recovery process. The borrower always remains 100% liable for the debt.
– Subsidy: The assistance provided through RLS, like many Government-backed business support activities, is regarded as a subsidy and is deemed to benefit the borrower. There is a limit to the amount of subsidy that may be received by a borrower, and its wider group, over any rolling three-year period. Any previous subsidy may reduce the amount a business can borrow.
All borrowers in receipt of a subsidy from a publicly-funded programme should be provided with a written statement, confirming the level and type of aid received.
Borrowers will need to provide written confirmation that receipt of the RLS facility will not mean that the business exceeds the maximum amount of subsidy they are allowed to receive.
Our decisions are made by people, not computers, which means that we lend by looking at the bigger picture.
Our business managers provide support and guidance throughout the application process, and for the duration of the loan, to give our customers the best chance for success.
Is my business eligible for RLS funding with SWIG Finance?
Businesses that are located outside of the South West region will not be eligible for funding with SWIG Finance. If your business is located outside of the South West, please visit the British Business Bank’s website to find a lender in your region.
Scheme Eligibility Criteria:
Turnover limit: The scheme is open to smaller businesses with a turnover of up to £45m (on a group basis, where part of a group).
UK-based: The borrower must be carrying out trading activity in the UK.
No Covid-19 impact test required: Unlike with the previous phases of the scheme, for most borrowers there is no requirement to confirm they have been affected by Covid-19. However, for charities and Further Education colleges, confirmation of Covid-19 impact will still be required in some instances.
Viability test: The lender will consider that the borrower has a viable business proposition. Therefore, they may disregard any concerns over its short-to-medium term business performance due to the uncertainty and impact of Covid-19.
Business in difficulty: The borrower must not be a business in difficulty, including not being in relevant insolvency proceedings.
Purpose: The facility must be used to support trading in the UK and cannot be used to support certain export related activities. However, there are certain restrictions on the use of proceeds of facilities in the agriculture, fisheries and aquiculture, and road freight transport sectors for borrowers impacted by the Northern Ireland Protocol.
Please note, The following are not eligible under RLS:
– Banks, Building Societies, Insurers and Reinsurers (excluding Insurance Brokers).
– Public sector bodies.
– State-funded primary and secondary schools.
Business Finance Support:
The British Business Bank has a range of guidance and resources available to all businesses. This includes content on managing your cashflow, as well as a list of independent advice services.
Northern Ireland Protocol: All borrowers will need to answer some questions to determine whether they are inside or outside the scope of the Northern Ireland Protocol, to determine the relevant subsidy limit and hence the potential maximum amount they can borrow under RLS.
Legal Notice: 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.
- ✓ Business loans for businesses typically trading over 2 years
- ✓ Limited companies only can apply
- ✓ Finance for working capital or growth (e.g. equipment)
- ✓ Loan value from £25,001 – £250,000
- ✓ We are an accredited Recovery Loan Scheme lender
- Terms & Conditions Apply
– Fixed & floating debenture taken (ranking behind existing charge holders, if appropriate)
– Unsupported personal guarantees are typically required for business loans
Information required to apply for a business loan:
- Last 2 sets of full annual accounts, including detailed Profit & Loss Accounts
- Management accounts for the period since most recent year end to date
- Cashflow forecast for a minimum of 12 months, identifying the requirement and showing spending
- Agreement to Open Banking report
- Credit Report for all directors
- Business plan / executive summary overview
- Details of any agreed outputs e.g. number of jobs safeguarded or created
Amount & Term
£25,001 – £250,000 repayable up to 60 months
Interest Charge
Charged at 12% ABR
Fees Arrangement
Fee of 5% charged at outset
Could a business loan help your business to grow?
Fill out the form and one of our team will be in touch.
Our Application Process
We assess each business on its own merit. To apply, please complete our online enquiry form below. Initial enquiries welcomed to establish suitability. Once we have received all the information we need to consider your application, the decision will be made as soon as possible.
Lending Information
Download our easy-to-use Eligibility and Documentation Checklist.
Tips & How-To Guides
Here you will find practical tips and how-to guides.
Got a question?
Give us a call today and we will answer any question you may have.
What you can expect from us
- ✓ A personal 1-2-1 service from your dedicated business manager.
- ✓ Relationship-based contact from your dedicated business manager.
- ✓ A genuine interest in your business.
- ✓ A desire to see your business succeed.
- ✓ Support and guidance for the duration of your loan.
Apply for a business loan now
Please complete the below enquiry form and a member of the team will be in touch.
Read more about our business loans requirements here.
“We chose to work with SWIG Finance because, unlike other lenders, at SWIG you can talk to a person. Ultimately, SWIG Finance were able to support our business by looking at the bigger picture – something which other lenders are not willing to do.”
Customer Testimonial, SME Business Owner
Frequently Asked Questions
You can see below the answers to our most frequently asked questions. If you have more questions, do not hesitate to contact us and we will be happy to help.
What is the Recovery Loan Scheme?
The new iteration of the Recovery Loan Scheme (RLS) launched in August 2022. The Scheme has been designed to support access to finance for UK small businesses as they look to invest and grow.
Amount and Repayment Period
Here at SWIG Finance, we can fund loans from £25,001 to £250,000 repayable from 1 to 5 years.
Is there a government-backed guarantee for the Recovery Loans Scheme?
The scheme provides the lender with a 70% government-backed guarantee against the outstanding balance of the facility after it has completed its normal recovery process. The borrower always remains 100% liable for the debt.
Am I eligible for a Recovery Loan with SWIG Finance?
To be eligible for a loan:
- You must be 18 or over.
- Limited companies only can apply.
- You must be a business with a clear plan for the purpose of the loan.
- The business must be able to demonstrate viability and growth potential.
- The business must be based in the South West of England.
- Applicant businesses will typically have been trading for more than 2 years.
The following are not eligible under RLS: Banks, Building Societies, Insurers and Reinsurers (excluding Insurance Brokers), Public sector bodies, State-funded primary and secondary schools.
What are the interest rates?
For a business loan of £25,001 to £250,000 repayable up to 5 years, the interest rate is 12% ABR.
What can Recovery Loans be used for?
Recovery Loans Scheme funding can be used for a range of purposes, including (but not limited to):
- Working capital
- Growth capital
- Operational expenses
- Recruitment or staff costs
- Purchasing Equipment
- Marketing
- Business Acquisition
Is a Debenture required?
Yes, a debenture will be registered at Companies House, which will typically rank behind existing charge holders.
What can I do if my business has been trading for less than two years?
You may be eligible to apply for a Start Up Loan instead, or as well as a Business Loan. Please visit our Start Up Loans page for more information.
What are the risks of a Recovery Loans Scheme loan?
There are risks involved with lending. For example, if you fail to make payments on time this can affect the business credit rating. If you have a business loan with SWIG Finance and you encounter any difficulties, please get in touch with your dedicated business manager who will support you in resolving the issues.
Will there be a credit check?
Credit checks are a standard part of determining whether you qualify for a business funding. At SWIG Finance, we undertake a credit check on the business and require business owners to supply their own personal credit reports.
Please note, however, even if you do not have a perfect credit score, we may still be able to help you.
Can I apply for a Recovery Loans Scheme loan if I have received other Covid-19 financial support?
It should be noted that businesses that took out a CBILS, CLBILS, BBLS or RLS facility before 30 June 2022 are not prevented from accessing RLS from August 2022. Although in some cases it may reduce the amount a business can borrow.
What will we need from you?
Information we will need to assess your loan request:
- Last 2 sets of full annual accounts, including detailed Profit & Loss Accounts
- Management accounts for the period since the most recent year-end to date
- Cashflow forecast for a minimum of 18 months, identifying the requirement for the business loan
- Agreement to Open Banking
- Credit Report for all directors
- Business Plan
- Details of any agreed outputs e.g. number of jobs created or safeguarded.
Do we provide the Recovery Loan Scheme support?
Yes, we are an accredited lender under the Recovery Loan Scheme (RLS), which means we will lend where tangible security isn’t available.
Are there any other fees?
There is a 5% arrangement fee at outset, which can be added to the loan. If any payments are missed or late there may be additional fees.
Does the business loan require a personal guarantee?
Unsupported personal guarantees are typically required for all unsecured business loans.
How do I apply for a Recovery Loans Scheme loan?
To apply, click the ‘Apply Now’ button to be directed to the Enquiry Form.
Once you’ve submitted your application a member of the team will be in touch to take you through the next steps.
Business Loan Uses:
If you need more information, have a look through our Business Loan Uses, to see what you can use our business loans for.
Funding Boost for The Boys Who Sew
Feb 15, 2023 | Case Study, SME
Gloucestershire-based curtain makers, The Boys Who Sew, is the latest business to be supported by SWIG Finance. The £36k loan, which was backed by the British Business Bank’s Recovery Loan Scheme (RLS), will be used to fit-out the new premises and invest in green technology, such as the installation of solar panels and an electric vehicle, in support of their Net Zero journey.