What are the eligibility criteria?
Please see the ‘Quick check RLS eligibility criteria’ section on this page.
Am I guaranteed to be eligible for a Recovery Loan?
Unfortunately, we can’t guarantee that you’ll be eligible.
You must be an existing HSBC business customer or complete our on boarding procedures so we can provide your loan.
You must meet the scheme rules which are set out in the eligibility criteria here.
You must be able to demonstrate the impact of Covid19 on your business and viability to meet the repayments of business liabilities.
Do I need to provide evidence that I have a viable business?
Yes. You must show in your borrowing proposal that your business will generate sufficient income to meet the repayments of the business liabilities.
You must also self-certify that your business has been adversely impacted by the Covid19 outbreak.
We will then assess your borrowing proposal using our normal lending criteria.
I have had de minimis aid in the past, can I still get a loan?
Yes, as long as you meet the scheme's eligibility criteria. Any previous de minimis state aid does not impact your eligibility for RLS and does not need to be taken into account. There is no interaction between any de minimis state aid previously received by a business and the size of the RLS facility they can access, should they be eligible.
What sectors are ineligible for RLS?
The following trades and organisations are not eligible to apply: Banks, Building Societies, Insurers and Reinsurers (but not insurance brokers); The public sector including state funded primary and secondary schools.
What percentage of my annual turnover must be generated by trading activities to be eligible for RLS?
You must be generating more than 50% of your income from trading activity. RLS is not designed to support shell companies or investment companies. Trading Activity is defined as any activity that generates turnover (whether or not such activity is carried on with the intention of making a profit).
Is there a maximum turnover?
There are no maximum turnover restrictions under RLS.
Are there any limitations?
The maximum loan available is £10m (no turnover restriction). However, if you are a ‘group’ the maximum amount per group is £30m.
RLS is limited to 2 x annual wage bill for 2019, or the latest available year; 25% of 2019 turnover, or justified liquidity need for the next 18 months (It is recommended to provide a detailed forecast to support liquidity requirements).
The maximum amount of a Recovery Loan is after the deduction of any existing CBIL, CLBIL (not intended to be repaid).
How should I calculate trading activity and turnover for start ups?
For start-ups, or SMEs which have traded for less than 12 months, you should estimate this based upon your business forecasted turnover for the first 12 months of trading.
Are there any sector specific considerations that I need to consider when applying for a loan?
Sector specific considerations are applicable when considering whether your business is within scope of the Northern Ireland Protocol. These apply to businesses active in the agriculture and fisheries sectors.