Shawbrook Bank accredited for recovery loan scheme
Shawbrook Bank has been accredited for the recovery loan scheme (RLS).
The challenger bank said that it is now able to offer term loan facilities from £250,000 to £10m to existing customers that have been directly impacted by Covid-19.
The loan terms can range from 12 months to six years.
The funds must be deployed to support trading primarily in the UK, Shawbrook said, and all-asset debenture securities are required.
Read more: Funding Circle outlines RLS interest rates and criteria
Businesses that have previously taken out a government-backed loan 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.
The RLS launched on 6 April this year, supporting UK businesses as they recover and grow following the pandemic. The government guarantees 80 per cent of the finance to the lender.
Read more: Assetz Capital reveals RLS rates
It will run until 31 December 2021, subject to review.
The RLS is the successor to the government’s previous Covid-19 support schemes, including the coronavirus business interruption loan scheme (CBILS). Shawbrook had participated in CBILS.
The British Business Bank has accredited a number of new lenders to the RLS in recent weeks, including Newable, SWIG Finance and Whiterock Finance.
Peer-to-peer lending platforms Assetz Capital and Funding Circle have also been accredited to the scheme.