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Coronavirus support

Recovery Loan Scheme

What is the Recovery Loan Scheme?

The Recovery Loan Scheme (RLS) launched on 6 April 2021 and supports access to finance for UK businesses as they recover and grow following the Covid-19 pandemic.

RLS aims to help businesses affected by Covid-19 and can be used for business purposes, including managing cashflow, investment and growth. It is designed to support businesses that can afford to take out additional finance for these purposes.

Businesses who have taken out a CBILS, CLBILS or BBLS facility are able to access the new scheme.

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

The Scheme will run until 31 December 2021, subject to review.

You will have to repay this loan in full.

Scheme features

  • Up to £10m facility per business: The maximum amount of a facility provided under the scheme is £10m per business (maximum £30m per group). Minimum facility sizes vary, starting at £25,050 for term loans.
  • Term length: Term loans are available for up to six years.
  • Interest and fees to be paid by the borrower from the outset: Businesses are required to meet the costs of interest payments and any fees associated with the RLS facility.
  • Access to multiple Covid-19 schemes: Businesses that have taken out a CBILS, CLBILS or BBLS facility are able to access the new scheme although the amount they have borrowed under a previous scheme may in certain circumstances limit the amount they may borrow under RLS.
  • Personal Guarantees: Personal guarantees are not permitted for facilities of £250,000 or less. Above £250,000 the maximum amount that can be covered under RLS is capped at a maximum of 20% of the outstanding balance of the RLS facility after the proceeds of business assets have been applied. No personal guarantees can be held over Principal Private Residences.
  • Guarantee to the Lender: The scheme provides the lender with a government-backed guarantee against the outstanding balance of the facility. The borrower always remains 100% liable for the debt.

Eligibility Criteria

  • Covid-19 impact: The borrower must confirm to the lender that it has been impacted by Covid-19.
  • UK-based: The borrower must be carrying out trading activity in the UK.
  • Viability test: The lender 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.
  • Credit and fraud checks for all applicants: Lenders will be required to undertake credit and fraud checks for all applicants. The checks and approach may vary between lenders.
  • Turnover limit: There is no turnover restriction for businesses accessing the scheme.

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, including content on managing your cashflow and a list of independent advice services.

For loans up to £50,000 see how much you might repay

This is for illustrative purposes only and won’t accurately reflect your individual circumstances. The rate you pay may differ to the example shown.

Questions you may have about the Recovery Loan Scheme

Important information before you start your application

You must be authorised to apply for a loan on behalf of your business.

We will complete a full credit check on all key principals of the business using a credit reference agency.

Has your business been affected by coronavirus (COVID-19)?
Tell us about your relationship with Ulster Bank...
When was your Ulster Bank business account opened?
Do you have a Relationship Manager?

Please contact your Relationship Manager

If you have a Relationship Manager, get in touch with them to discuss your needs and help you apply for the Recovery Loan Scheme.

Apply online for the Recovery Loan Scheme

Thank you for choosing our Recovery Loan Scheme.

Remember, you will have to repay this loan in full.

 

Borrow from £25,050 up to £10m

Loan terms up to 6 years

Fixed and variable interest rates

 

Due to demand, it may take longer than usual to process applications.

If you have already submitted an application through Ulster Bank for a Recovery Loan Scheme, please don't make another application.

You can expect to hear from us within 7 working days of submitting your Recovery Loan Scheme application online.

Unfortunately you're not eligible to apply for the Ulster Bank Recovery Loan Scheme

You can apply for one of our other loans. See your loans and finance options.

Unfortunately you're not eligible to apply for the Ulster Bank Recovery Loan Scheme

You can apply for one of our other loans. See your loans and finance options.

Unfortunately you're not eligible to apply for the Ulster Bank Recovery Loan Scheme

You can apply for one of our other loans. See your loans and finance options.

Unfortunately you don't qualify for the Recovery Loan Scheme

You can apply for one of our other loans. See your loans and finance options.

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 the British Business Bank.

More support for your business

Loan repayment holiday to give your business a bit of breathing space

If you have a business loan with us, you can request a loan repayment holiday through your Relationship Manager if you have one or apply online.

Government schemes and support for businesses affected by coronavirus

There is a range of Goverment grants and support for businesses who have been affected by coronavirus. Find out what support schemes you may be eligible for.

View our range of loans and finance options available for businesses

See our range of loans and finance options. From flexible everyday lending to innovative, alternative funding solutions. We could help you move your business forwards.