Proactive specialist asset management
We provide venture, private equity or debt finance to regional businesses with growth ambition.
The Recovery Loan Scheme (RLS) was launched on 6 April 2021 and supports access to finance for UK businesses as they recover and grow following the COVID-19 pandemic.
RLS aims to help businesses affected by Covid-19 and can be use for business purposes, including, managing cashflow, investment and growth.
It is designed to support businesses that can afford to take out additional finance for these purposes. Businesses who have taken out a CBILS, CLBILS or BBLS facility are able to access the new scheme.
A key aim of the Recovery Loan Scheme is to improve the terms on offer to businesses, but if a lender can offer a business the choice of a commercial loan on better terms, without requiring the guarantee provided by the RLS, they should do so.
At Autumn Budget 2021, the government announced that the Recovery Loan Scheme will be extended by six months to 30 June 2022, with changes applying to all offers made from the 1 January 2022.
If you have a query about RLS, or wish to discuss an outstanding application, please contact us at email@example.com.
Mercia has adopted a flexible and at times innovative approach.
Andy McKenna, Sheffield City Region Growth Hub
Scheme features include:
– Up to £2m facility per business: The maximum amount of a facility provided under the scheme is £2m per business (maximum £6m per group). Minimum facility sizes vary, starting at £1,000 for asset and invoice finance, and £25,001 for term loans and overdrafts.
– Term length: Term loans and asset finance facilities are available from three months for up to six years, with overdrafts and invoice finance available from three months for up to three years.
– Interest and fees to be paid by the borrower from the outset: Businesses are required to meet the costs of interest payments and any fees associated with the RLS facility.
– Access to multiple COVID-19 schemes: Businesses that have taken out a CBILS, CLBILS or BBLS facility 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.
– Personal Guarantees: Personal guarantees are not permitted for facilities of £250,000 or less. Above £250,000 the maximum amount that can be covered under the RLS is capped at a maximum of 20% of the outstanding balance of the RLS facility after the proceeds of business assets have been applied. No personal guarantees can be held over Principal Private Residences.
– Guarantee to the Lender: The scheme provides the lender with a government-backed guarantee against the outstanding balance of the facility. The borrower always remains 100% liable for the debt.
Fast, professional debt solutions when you need them the most.Paul Taberner, Mercia
Mercia provides term loans using NPIF Debt Finance between £100,000 and £750,000.
Lending can be to early stage or more established businesses that can demonstrate growth potential.
Loans are available up to a maximum repayment term of five years with no early repayment fees.
The fund is a key part of the government’s ‘Northern Powerhouse’ vision, which aims to help reduce the historic North-South divide and create economic prosperity in the North of England with an aim to create jobs and encourage and attract additional private sector investment.
Please note: The following are not eligible under RLS:
– Banks, Building Societies, Insurers and Reinsurers (excluding Insurance Brokers)
– Public sector bodies
– State funded primary and secondary schools
If you have answered yes to all of the above, then please get in touch here so we can help you plan your next steps. If you want to speak to someone directly, you can reach the RLS team on 0330 223 2830.
If you are not sure and what to ask the team a question, you can do that here. Mercia has several offices in the NPIF region, although at the moment we are conducting all our meetings remotely.
We aim to respond to your enquiry within 24 hours putting you directly in touch with a member of the investment team who will handle your enquiry promptly.
The British Business Bank has a range of guidance and resources available to all businesses, including content on managing your cashflow and a list of independent advice services.
The Recovery Loan Scheme is managed by the British Business Bank on behalf of, and with the financial backing of, the Secretary of State for Business, Energy & Industrial Strategy. British Business Bank plc is a development bank wholly owned by HM Government. It is not authorised or regulated by the PRA or the FCA. Visit the British Business Bank’s RLS page.