If you’re reading this blog post, then you’re probably wondering how to apply a recovery loan scheme with TSB. Well, keep reading because I will be sharing everything you need to know.
The Recovery Loan Scheme will provide support to UK businesses as they recover following the pandemic.
What is a Recovery Loan Scheme (RLS)?
The recovery loan scheme (RLS) is a new scheme that came into place on the 6th of April 2021. This scheme replaced the Bounce Back Loan (BBL) and Coronavirus Business Interruption Loan Scheme (CBILS).
Most of you have probably heard of the bounce back loan scheme. In fact, maybe you’ve had one. So this replaces those very popular schemes, what impact is it going to have on your business?
Let’s look at the key differences that we need to know before you decide if you should apply.
- The RLS is backed by the government by up to 80% of the amount borrowed. Compared the the BBL in particular, the previous loan was backed up by 100%. What that means is if your business failed the Government would cover 80% of the loan, this compares to the Bounce Back Loans scheme that was backed to 100% of the money borrowed.
- The RLS lets you borrow from £25,000 up to £2,000,000. Compared to the BBL you can only borrow £2,000 to £50,000. This is going to be very important for business owners that need that extra funding to get them back on track.
- RLS are to help you get you back to normality meanwhile the BBL were to help keep you alive.
If you have a bounce back loan already, you can still apply for the recovery loan scheme. The bounce back loan was to keep you trading through this difficult time, the recovery loan is to get you back on your feet. I hope you read that clearly. If you have a Bounce Back Loan you are able to borrow additional funds using The Recovery Loan Scheme.
This is great news, as a lot of business owners have already spent their Bounce Back Loan just to survive the last few months. You should be looking to use the Recovery Loan Scheme to grow your business. The best thing you could do it invest in marketing your business, if you want to get great at marketing go grab a FREE copy of my book here.
Who should be applying for a recovery loan scheme with TSB?
(1) The 1st batch of people that should be applying for a Recovery Loan with TSB are people that already have an account with TSB. The easiest place for you to get one of these recovery loans is where you already have your bank. Think about it, they already know you, they have all your details on the system so it will be much faster to apply with them.
(2) People who don’t have an account with TSB. TSB is a great option for people who have banks that don’t offer the recovery loan scheme. Not every bank is lending via The Recovery Loan Scheme which is a pain. So if your bank is not a lender maybe look at TSB as an option to apply with.