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Recovery Loan Scheme

Apply for the Recovery Loan Scheme
Apply for the Recovery Loan Scheme
The Recovery Loan Scheme (RLS) Phase 3 is a Government backed initiative designed to support eligible UK businesses to survive, recover and grow.

At a glance – RLS with HSBC:

For all amounts we will review security requirements on an individual basis. If security requirements (including personal guarantees) are deemed appropriate we will discuss and agree with customers as part of our credit approval process.

Existing business assets may be taken to secure a RLS Phase 3 loan.

There is no fee required to be paid by you for the Government guarantee.

The RLS Phase 3 scheme is open to new and existing customers.

The RLS Phase 3 scheme will be available until 30th June 2024.

The scheme will only be open to businesses with an annual group turnover of £45,000,000 or less.

The timing for processing applications will vary and are subject to receipt of some supporting documentation and information (such as the list below):

  • Cash flow forecast
  • Business plan
  • Latest Annual accounts

Capital repayment holidays are available up to 24 months, subject to eligibility and viability assessments.

A Government guarantee which secures bank loans to any viable business with a sound borrowing proposal.

The RLS Phase 3 loan can be used where we would either:

  • not have been prepared to offer a Commercial Facility for the same amount on similar terms; or
  • would only have been prepared to offer a Commercial Facility on similar terms at a higher price.

Any UK business not subject to the Northern Ireland Protocol can apply for a RLS Phase 3 loan of between £25,001 and £2,000,000 subject to (i) eligibility and viability assessments and (ii) previous relevant subsidy amounts received by you or any member of your group.

Any UK business that is subject to the Northern Ireland Protocol can apply for an RLS Phase 3 loan between £25,001 and £1,000,000 subject to (i) eligibility and viability assessments and (ii) previous relevant subsidy amounts received by you or any member of your group and (iii) specific sector sub-limits as mentioned further in the Eligibility section below.

Loan term from 1 year up to a maximum of 6 years.

A loan arrangement fee of 1.5% of the facility amount is payable for RLS Phase 3 loans of between £25,001 and £299,999 and is negotiable for RLS Phase 3 loans between £300,000 and £2,000,000.

No loan prepayment fee should you wish to repay early (although fixed rate breakage costs may be payable for fixed rate RLS Phase 3 loans of £300,000 and above.)

Variable and fixed interest repayment options available, subject to amount borrowed and loan term.

Key Benefits

Businesses that have received support under the previous Government COVID19 guaranteed loan schemes are still eligible to access finance under this scheme, subject to eligibility and limitations.

Funding to support your business to survive, recover and grow.

Capital Repayment Holidays available on an RLS Phase 3 loan where needed, subject to approval.

  1. Is your business turnover or, if applicable, the aggregate turnover of your group for the last financial year less than £45,000,000 or forecasted to be less than £45,000,000 where your business has been trading for less than 12 months?
  2. Is your business based in the UK?
  3. Will the funding you require be used to support business activity within the UK?*1
  4. Is over 50% of your group's business turnover generated from trading activity?*2
  5. If you are a registered charity or a further education college, has your business been impacted by Covid19?*3
  6. Do you operate in an eligible sector*4?
  7. If you are not subject to the Northern Ireland Protocol, is the amount you require to borrow between £25,001 and £2,000,000?*5
  8. If you are subject to the Northern Ireland Protocol, is the amount you require to borrow between £25,001 and £1,000,000?*6
  9. Is funding required for 6 years or less?
  10. You must not be a business in difficulty*7
  11. You understand that you will be liable for 100% of any facility that may be provided, and that HSBC will always seek to recover the outstanding balance of any facility from you and the proceeds of any security you, or any security provider on your behalf, has given for the loan.
  12. An RLS Phase 3 loan must not be used in support of export related activities.

*1 If you are a registered charity or a further education college, on or prior to 31 December 2022, and you obtain a RLS Phase 3 loan, then this criterion will be satisfied if you are or will be engaged in activities in the UK upon first draw down of that RLS Phase 3 loan.

*2 “Trading Activity” means any trading or commercial activity that generates turnover (whether or not such activity is carried on with the intention of making a profit).

*3 This criterion will apply will apply to any applications received by registered charities or further education colleges on or prior to 31 December 2002 and will not apply on and from 1 January 2023.

*4The 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.

*5 If you are not in scope of the Northern Ireland Protocol, the maximum RLS Phase 3 loan amount of £2,000,000 may be reduced if you or any member of your group have received certain previous subsidies. We will require you to confirm the relevant subsidy (if any) you or any member of your group have received as part of your application.

*6 If you are in scope of the Northern Ireland Protocol, the maximum RLS Phase 3 loan amount of £1,000,000 may be reduced if you or any member of your group have received certain previous subsidies and/or are in one of the following sectors, which will be subject to maximum loan amount sub-limits as follows: £110,000 for agriculture, £170,000 for fishery and aquaculture and £570,000 for road haulage. We will require you to confirm the relevant subsidy (if any) you or any member of your group have received and whether your business is in one of these sectors as part of your application.

*7 Please refer to the Business in Difficulty section in the FAQs for further information.

Recovery Loan Scheme FAQS

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 http://www.british-business-bank.co.uk/recovery-loan-scheme.

Important Information

The standards for lending Practice for business customers

Find out what you can expect when you borrow from HSBC.

Recovery Loan Scheme Factsheet

Read more about this scheme.

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