Almost third of commercial brokers unaware Recovery Loan Scheme is still running

According to a survey from Allica Bank, only 30 per cent have recommended RLS-backed loans to clients in the last six months.

Around 30 per cent of brokers surveyed said they had not recommended them as they did not know enough about the scheme.

A quarter of brokers who have not recommended the scheme said they believed it could only be used for business recovery.

This was initially how the scheme was intended when it was launched by the British Business Bank during the pandemic, but the latest version has removed mentions of business recovery in its criteria.

The British Business Bank now says the scheme is “geared towards supporting businesses as they look to invest and grow”.

To be eligible for the scheme a business must be UK-based and have a group turnover of £45m. The latest scheme will run until 30 June 2024.

David Holdstock, government lending manager at Allica, said: “The RLS allows Allica to support businesses with loans that would otherwise fall outside of our usual credit appetite. It’s a fantastic opportunity for brokers to help their clients access funding that they otherwise may not have been able to.

“Due to the name of the scheme, there’s an understandable misapprehension that it can only be used to support businesses in recovery but this is no longer the case. That’s why we’re trying to raise awareness among our broker community about its many use cases.

“It’s a brilliant initiative from the British Business Bank that’s not had as much uptake as we would have expected, which is disappointing given the current economic environment.”