Question to the Department for Business, Energy and Industrial Strategy:

To ask the Secretary of State for Business, Energy and Industrial Strategy, what the criteria are for the Covid Recovery Loan Scheme.

The Recovery Loan Scheme (RLS) is delivered by the British Business Bank (BBB) through a network of accredited lenders. The scheme is open to small and medium sized businesses that:

• Have a turnover not exceeding £45 million per annum
• Have been impacted by Covid-19
• Are carrying out trading activity in the UK
• Would be viable if not for the pandemic
• Are not in collective insolvency proceedings

Further information on who is eligible for the scheme can be found on the BBB’s website: https://www.british-business-bank.co.uk/ourpartners/recovery-loan-scheme/for-businesses/.

Decision-making on whether a company is eligible for RLS and whether it is suitable for them is fully delegated to the accredited lenders. Prospective borrowers do not need to use a broker to access the scheme and are able to apply to lenders directly, subject to each lender’s internal processes. Where a company has applied for an RLS facility and been unsuccessful, the lender is responsible for explaining why the company’s application was declined.