Third iteration of RLS hits £1bn lending mark
The third iteration of the Recovery Loan Scheme (RLS) has provided more than £1bn of financing to small businesses since it was launched in August 2022.
The loan scheme, which is administered by the British Business Bank (BBB), was launched to support businesses as they recovered from the impact of the Covid-19 pandemic.
The first two phases of the RLS delivered £4.3bn of finance. A number of alternative lenders have joined the scheme, including former peer-to-peer lending platform Funding Circle.
In December 2023, an asset-based lending variant of the RLS was launched, to broaden the support available for small- and medium-sized enterprises (SMEs) in the UK.
Read more: Funding Circle granted small business lending licence in the US
“This milestone is a fantastic achievement for the Bank and for all of the lenders participating in the RLS,” said Louis Taylor, chief executive of the BBB.
“It is good to see the diversity of lenders that have joined the scheme and the types of finance they’ve been able to offer, especially asset finance, which is so important to growing and innovating businesses.
“Direct loan guarantee schemes such as this are vital to ensuring the market serves the needs of smaller businesses across the UK.”
Read more: Asset-based lending variant of Recovery Loan Scheme launches
The BBB reported that approximately two thirds of facilities under the third phase of the scheme have been offered outside of London and the South-East. More than half of the offered facilities were for growth capital for UK smaller businesses, with the majority of the remaining facilities for working capital.
“We’re backing businesses of all sizes and it’s fantastic that over £1bn has now been delivered to support small businesses across the country who are at the heart of local economies and communities,” said MP Kevin Hollinrake, minister for enterprise, markets and small business.
“The RLS was introduced to support SMEs and to invest and grow, and through the BBB we’re supporting entrepreneurs to scale up their ambitions”.
The RLS is available to businesses across the UK which have a turnover of up to £45m. Businesses can apply for up to £2m, or £1m for borrowers who fall under the scope of the Northern Ireland Protocol. They can use the finance for any legitimate business purpose, including managing cashflow, investing in new equipment or vehicles, and growth through new products or expansion.
Read more: Covid loans “hobbling the restructuring space”
