The British Business Bank, which recently announced the details of the new iteration of its business loan scheme, has named the first batch of lenders that would provide the Recovery Loan Scheme (RLS) for a further two years. These are:

Each will be able to offer facilities of up to £2 million to businesses with a turnover of up to £45 million.

The lender can use the scheme at its discretion and the scheme is designed to enable the lender to improve the terms on offer to it’s potential borrowers – as opposed to the lender’s existing commercial loans.

The British Business Bank is continually reviewing potential lenders and the British Business Bank website will list an update of additional lenders once they are confirmed as participants in the scheme.

Recovery Loan Scheme – Concerns over Personal Guarantees

Stepchange Business Growth’s, Mark Marsh stated “In light of the expected difficulties that SMEs will face in the coming year, ensuring that they have adequate funding resources is extremely important. The more lenders which have access to these new funds, the better, and hopefully some will provide borrowing solutions without the need of personal guarantees (PGs). Part of the conditions of the scheme is that a business must be able to afford the debt – so if a business passes this test why put a stressful burden of a PG on directors/ owners?”

If you want to find out more about the new iteration of the RLS take a look at the British Business Bank or if you want help in preparing your case for finance then why not contact us?