United Trust Bank (UTB) has begun offering Recovery Loan Scheme (RLS) facilities of up to £10m, supporting access to finance for businesses as they recover and grow following the Covid-19 pandemic, the bank said in a statement.
RLS facilities are available through UTB’s development finance, structured property finance, bridging finance and asset finance divisions.
The facilities, offered in partnership with HM Government working through British Business Bank, can be used by businesses adversely impacted by Covid-19 for any purpose, including business investment and working capital. The scheme aims to improve the loan terms on offer to businesses able to afford more debt and can be issued to borrowers who already have CBILS, CLBILS or BBLS facilities in place.
The Recovery Loan Scheme will run until the 31st December 2021, subject to review.
Mark Stokes, chief commercial officer of United Trust Bank, said: “As the UK continues to emerge from the Covid-19 pandemic, many businesses will be looking to invest, rebuild and take advantage of new opportunities. United Trust Bank is an experienced ‘through the cycle’ lender and we understand the challenges businesses have faced over the last 15 months and that many of them have been seriously impacted through no fault of their own. We are keen to support housebuilders, developers and SMEs with the funding they need to get themselves back on track”.
On 9 March, UTB reported a 31% increase in new lending to £1.3bn in 2020, helping to drive its operating profit to £44.1m, a 35% increase on its 2019 performance.
Total assets reached £1.9bn, an increase of 33%, driven by demand for the Bank’s products and a growing distribution network.
The Bank wrote £1.3bn of new loans during the year, which was 31% more than in 2019, and the loan book exceeded £1.6bn for the first time, of which £118m was Government supported lending under the CBILS scheme.