Allica Bank joins government-backed Recovery Loan Scheme

Challenger SME bank Allica Bank has joined the list of accredited lenders to the government-backed Recovery Loan Scheme (RLS).

The RLS is one of a number of government-supported measures aimed at helping businesses impacted by Covid.

Launched in April, it offers loans of £25,000 to £10m to UK businesses as they recover following the pandemic.

Originally due to end in December of this year, the scheme was recently extended to June 2022.

Under the scheme, Allica Bank will be offering asset finance, followed by commercial property finance next year. 

It joins scores of other banks of different sizes lending under the scheme, including Funding Circle,HSBC,NatWest and Shawbrook Bank.

The scheme works by the government guaranting 80 per cent of the finance to the lender while the borrower is 100 per cent liable for the debt.

Conrad Ford, Allica’s chief product officer, said: “To be the first non-CBILS lender to be approved for the Recovery Loan Scheme is a real boon for Allica."

“Our mission, since day one, has been to empower established SMEs with expert human support, backed up with a seamless digital experience."

“These features have never been more important for business owners than during this pandemic, and we’re pleased that established SMEs affected by it will now have even more choice."