Let’s talk the Barclays Recovery Loan Scheme and how it can help your business.
The Recovery Loan Scheme (RLS) is a scheme launched by the government to help finance small and large UK business owners affected by these trying times.
The purpose of the scheme is to help support business recovery, investment and growth, following the pandemic and the end of the transition period. On this blog, I will talk about applying a Recovery Loan Scheme with Barclays.
What Is A Recovery Loan Scheme?
The Recovery Loan Scheme (RLS), was launched on 6 April 2021 to replace the Bounce Back Loan Scheme (BBLS), Coronavirus Business Interruption Loan Scheme (CBILS) which closed at the end of March 2021.
The Recovery Loan Scheme aims to help businesses affected by the pandemic, it can be used for any legitimate business purpose. This includes managing cashflow, investment and business growth.
The RLS operates in largely the same way as the existing support measures (which I summarised in a short blog post available here).
NOTE: The government will only be guaranteeing 80% of the loan to the lender, this is down from 100% on Bounce Back Loans. This means lending will be a little tougher than the Bounce Back but still way easier than a normal business loan.
What About The Bounce Back Loan (BBL) and Coronavirus Business Interruption Loan (CBIL) Schemes?
These loans let you fund your business up to £50,000 to keep your business going. Unfortunately, these loans will end on 31st March 2021.
Bounce Back Loan Loan Scheme (BBL)
The bounce back loans were really good because they were 100% guaranteed by the government. Most people got the loan but unfortunately, some didn’t.
Coronavirus Business Interruption Loan Scheme (CBILS)
The coronavirus business interruption loan scheme helps medium sized businesses and bigger businesses. The CBILS allowed businesses to borrow up to millions of pounds to support them and keep them trading.
What You Can Use The Recovery Loan Scheme For:
- Cash flow
- Grow your business
- Purchase equipment
- Pay a one-off cost
- Help with payroll
- Invest in marketing
Applying The Recovery Loan Scheme With Barclays
(Watch this quick video on who and who should not be applying for a recovery loan with Barclays.)
Who should be applying for a recovery loan scheme loan with Barclays Bank?
People that should be applying for the recovery loan scheme with Barclays are people that are banking with them already.
The Recovery Loan Scheme (RLS) is more similar to the Coronavirus Business Interruption Loan Scheme (CIBLS). You’re gonna need to make sure that you’ve got things organised before you apply with Barclays.
Make sure everything is up to date with Companies House. You need to set every filing on your accounts and get that into company’s house. They need that information on file as it needs to be officially logged.
NOTE: A business owner’s Recovery Loan Scheme application will be rejected if they don’t get this stuff together.
If you don’t have a Barclays account you can approach them to open one if your bank is not included in this scheme.