Asset Finance

Recovery Loan Scheme

Access up to £1 million of straightforward and flexible finance through the government's Recovery Loan Scheme.

Learn more

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Supporting businesses with growth

Allica Bank is approved to offer asset finance through the Recovery Loan Scheme. It’s a government initiative designed to support access to finance for UK small and medium businesses as they look to invest and grow.

With Allica Bank, businesses can access between £50,000 and £1 million of asset finance through the scheme. It is designed to enable us to offer you better terms. 

What is the Recovery Loan Scheme?

The new iteration of the Recovery Loan Scheme (RLS) launched in August 2022 and is designed to support access to finance for UK small businesses as they look to invest and grow. 

Businesses who 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 Allica Bank. We are required to take standard credit and fraud checks for all applicants.

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

The Scheme will run until 30th June 2024, subject to review.

How it works

  • The maximum term we can lend through the Recovery Loan Scheme is 6 years.
  • The scheme provides Allica with a government backed guarantee against the outstanding balance of the facility.
  • We may request other security.
  • You always remain 100% liable for the debt.
  • Any previous subsidy received by a borrower, and its wider group, over any rolling three-year period may reduce the amount a business can borrow.

Check scheme features

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Who can apply?

The Recovery Loan Scheme is open to all SME businesses. You can apply even if you’ve had a Bounce Back Loan or Coronavirus Business Interruption Loan Scheme facility.

To be successful, you must meet all of Allica’s usual eligibility criteria, including:


  • Be a UK-based business.
  • Be a Limited Company, LLP, Partnership or Sole Trader, typically with at least two-years of financial accounts.
  • Be a viable business proposition.
  • Not be a business in difficulty.

All applications will be subject to credit and fraud checks, as well as lending assessments. Subject to status. Terms and conditions apply.

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Who can apply?

The Recovery Loan Scheme is open to all SME businesses. You can apply even if you’ve had a Bounce Back Loan or Coronavirus Business Interruption Loan Scheme facility.

To be successful, you must meet all of Allica’s usual eligibility criteria, including:


  • Be a UK-based business.
  • Be a Limited Company, LLP, Partnership or Sole Trader, typically with at least two-years of financial accounts.
  • Be a viable business proposition.
  • Not be a business in difficulty.

All applications will be subject to credit and fraud checks, as well as lending assessments. Subject to status. Terms and conditions apply.

Eligibility criteria

  • Turnover limit: The scheme is open to smaller businesses with a turnover of up to £45m (on a group basis, where a 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. For charities and Further Education colleges, confirmation of Covid-19 impact will still be required in some instances. 

  • Viability test: Allica Bank 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.

  • 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. 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 Recovery Loan Scheme:

  • Banks, Building Societies, Insurers and Reinsurers (excluding Insurance Brokers)
  • Public sector bodies
  • State funded primary and secondary schools

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.

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 http://www.british-business-bank.co.uk/recovery-loan-scheme

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General

What is a business in difficulty?

The borrower must not be a business in difficulty, including not being in relevant insolvency proceedings.

Do I need to confirm my business has been affected by Covid-19?

Unlike with the previous phases of the scheme, for most borrowers there is no requirement to confirm they have been affected by Covid-19. For charities and Further Education colleges, confirmation of Covid-19 impact will still be required in some instances.

What is a ‘subsidy’, and is RLS a 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.

How do you determine whether my business is within 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.

Can I have another RLS facility if I have an existing CBILS/ CLBILS/ BBLS/ RLS facility?

Yes. If your business has taken out CBILS, CLBILS, BBLS and/or RLS facilities before 30 June 2022, you can access RLS providing you meet the RLS eligibility criteria and that any additional lending is considered affordable by the lender.
 
If you accessed CBILS, CLBILS and/or RLS facilities before 30 June 2022, this will not count towards your cumulative subsidy limit in calculating the maximum amount you can borrow through RLS.
 
If you took out a BBLS, it may count towards your cumulative aid allowance when calculating the maximum amount you can access – you will have been informed by your BBLS lender at the time if your BBLS was provided under the EU’s de minimis Regulations.
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How to apply

You can find out more about our asset finance options and how to apply on our asset finance page.

Simply let your relationship manager know that you’d like to apply through the scheme when you make your application.

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