What’s the difference between CBILS and the Recovery Loan Scheme?
On the 6th of April, the government’s new Recovery Loan Scheme (RLS) will open for applications. The existing loan scheme, Coronavirus Business Interruption Loan Scheme (CBILS) will end on the 31st March 2021.
Below you will find the similarities and differences between the two government loan schemes.
What’s the benefits of the Recovery Loan Scheme?
No minimum trading history – Newer businesses will be able to access the support of the Recovery Loan whilst they couldn’t with CBLIS.
No turnover requirements – CBLIS required a minimum annual turnover however, the recovery loan doesn’t which means smaller and newer businesses can access funding.
Smaller and Higher loan amount – the starting loan amount is £25,001 and goes up to £10 million so businesses now have the option to borrow less or a lot more compared to CBLIS.
Are you eligible for the Recovery Loan?
To be eligible for the loan, you will need:
- To be a business trading in the UK
- To show that your business is viable or would be viable were it not for the pandemic
- Proof that your business has been impacted by the coronavirus pandemic
- Proof that your business is not in collective insolvency proceedings
Businesses that have received support from the Coronavirus Business Interruption Loan Scheme, Coronavirus Large Business Interruption Loan Scheme or the Bounce Back Loan Scheme will still be eligible to access finance under this scheme if they meet all the criteria.
Who cannot apply for the recovery loan?
- Banks, building societies, insurers and reinsurers (not insurance brokers)
- Public sector bodies
- State funded primary and secondary schools
If you have any questions or would like to apply for the Recovery Loan Scheme, please don’t hesitate to get in touch with our team. Call 01270 443510 or email the team: enquiries@amplocommercialfinance.co.uk.