As a leading provider of business support services, we have achieved a significant milestone by becoming the first non-bank lender to be accredited under the UK Export Finance’s General Export Facility (GEF) programme. This accreditation allows exporting SMEs greater access to working capital and Newable are providing this working capital under RLS/GGS Growth Loans.
What is the Recovery Loan Scheme (RLS)/Growth Guarantee Scheme (GGS)?
The Recovery Loan Scheme (RLS) was introduced to help UK businesses recover from the challenges posed by the Covid-19 pandemic. It enables businesses to access essential financing, supporting their growth and resilience during uncertain times.
The scheme enables UK SMEs to access the financing they need for various purposes, including working capital or investment. Whether businesses require funds to stabilise their operations or invest in growth opportunities, the RLS provides a lifeline.
From June 2024, the RLS will be renamed the Growth Guarantee Scheme. Importantly, the terms of the scheme will remain unchanged, ensuring continuity and consistency for lenders and the business community.
How much can businesses borrow?
Newable provides RLS/GGS Loans for up to £300,000 over a 3 year term. These facilities can be used to support both new contract wins and provide additional working capital to existing exporters. Our expertise lies in supporting smaller SMEs, equipping them with the necessary tools for successful export ventures.
The government provides a 70% guarantee on the finance extended by lenders. This guarantee acts as a safety net, incentivising lenders to offer financial assistance to businesses during difficult circumstances. However, it’s crucial to understand that the borrower bears full responsibility for the debt and must be able to repay all monies borrowed.
What are the eligibility criteria?
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- Your business must be trading in the UK.
- The business turnover should be £45 million or less.
- You need to demonstrate that your business is viable and not in financial distress.
- Businesses that previously received support through earlier Covid-19 loan guarantee schemes or earlier phases of the Recovery Loan Scheme are eligible if they meet other criteria.
Exclusions: Certain entities cannot apply for RLS/GGS, including banks, building societies, insurers, reinsurers (except insurance brokers), public sector bodies, and state-funded primary and secondary schools.
What are the types of finance available?
Newable offer term loans to support exporting SMEs. These loans range from £26,000 to £300,000 and are commonly used by businesses to manage their cash flow, invest in growth, or cover operational expenses. Term loans are repaid over a fixed period, with regular instalments (monthly) and the interest rates are fixed, providing surety of cost and cashflows.
The Growth Guarantee Scheme
The rebranding of RLS to GGS reflects a shift in focus from recovery to growth. As economies stabilise, the emphasis moves beyond survival to expansion and innovation. Under the new name, the scheme aims to facilitate investment and scaling up of businesses. It becomes a catalyst for entrepreneurial ventures seeking to thrive in a post-pandemic landscape.
The scheme’s extension beyond June 2024 signals a commitment to supporting businesses in their long-term growth journey. Lenders can continue to offer financial assistance, and businesses can seize opportunities without the looming deadline of the scheme’s closure.
The transition opens doors for new applicants who missed out on previous iterations. Entrepreneurs can now access funds to fuel their ambitions. Innovative projects, expansions, and market penetration strategies can flourish under the umbrella of the Growth Guarantee Scheme.
Why the Growth Guarantee Scheme?
The scheme will continue to provide a 70% guarantee to participating lenders on finance provided to SMEs. By offering this guarantee, the scheme aims to increase working capital availability for SMEs, supporting over 11,000 businesses between 1 July 2024 and 31 March 2026.
Newable’s Role in Supporting Exporting SMEs
Through our RLS accreditation, Newable will continue to offer working capital facilities of up to £300,000 to exporting businesses.
We are ready to leverage the Growth Guarantee Scheme to continue providing cashflow solutions to UK exporting SMEs. As the business landscape evolves, we remain dedicated to empowering businesses, fostering growth, and contributing to the resilience of the UK economy.
About Newable
For over 4 decades, Newable has been supporting thousands of businesses every year through the provision of Money, Advice and Workspace. An employee-owned business with a commitment to creating positive impact in all that we do, our team are on hand to help your business today.
Newable’s Export Finance is a UK Export Finance supported product that gives exporting SMEs flexible working capital to help them capture opportunities and respond quickly to challenges.
We provide working capital finance facilities of up to £300k for exporters to help them win contracts, fulfil orders and support growth.
Find out how we can help you and your business navigate the challenges of exporting.