Two more lenders join new RLS
Two more lenders have been authorised by the British Business Bank (BBB) to deliver the new iteration of the Recovery Loan Scheme (RLS).
DSL Business Finance and First Enterprise have joined the new scheme, bringing the total number of RLS-approved lenders to 10.
They join BCRS Business Loans, HSBC, Genesis Asset Finance, Bank of Scotland, Coventry & Warwickshire Reinvestment Trust, Lloyds Bank, NatWest and Royal Bank of Scotland.
Read more: Details of updated Recovery Loan Scheme revealed
To date, no peer-to-peer lenders have been authorised to deliver the latest government lending scheme, although Peer2Peer Finance News is aware that former P2P lender Funding Circle is working with the government towards its accreditation.
The original RLS delivered £4.5bn to help businesses recover from the impact of the Covid-19 pandemic.
The new iteration of the scheme allows businesses to apply for loans up to the value of £2m or £1m for businesses in Northern Ireland. The government will underwrite 70 per cent of each loan, and fees will be capped at 14.99 per cent.
Read more: Eight lenders join new RLS, but still no P2Ps
It is only open to businesses with an annual turnover of £45m or less.
First Enterprise said that its minimum facility sizes vary, starting at £1,000 for asset and invoice finance, and £25,001 for term loans and overdrafts.
DSL is a Scottish lender, and will only offer funding to businesses which carry out trading in Scotland. It is offering loans between the value of £25,001 and £75,000, with a fixed interest rate of 10.5 per cent per annum.
Read more: Third of SMEs won’t survive without access to finance