Recovery Loan Scheme (iteration 3) Performance Data as at 31 March 2024

Definitions

• Drawn value - the total amount for facilities which have been drawn down by the borrower.
• Facility or facilities - refers to a Recovery Loan Scheme (third iteration) facility or facilities, being either a term loan facility, a revolving credit facility, an invoice finance facility, or an asset finance facility (as applicable) made available by an accredited lender to a borrower.
• Scheme portal - the database hosted by the Bank as part of its role in administering the schemes. It is used by all accredited scheme lenders to report on guaranteed facilities and make claims under the guarantee agreement. The reporting requirements have evolved over time. The portal is updated at various points in a facility lifecycle as reported by lenders.
• Settled - settlement has been made following a lender making a claim. Once the guarantee claim is processed and payment is released, the facility is marked as settled on the Scheme portal.
• Turnover - estimated annual turnover of the borrower, inputted by the lender.

Limitations and further considerations

The following should be considered in relation to the data:

• Data is as at 31 March 2024, and extracted at close of business on the 16 April 2024, from the information continuously submitted to the British Business Bank’s portal by accredited lenders. The portal is used by the British Business Bank and lenders to administer the facilities. Portal data is dependent on lenders submitting accurate and timely data and is not real-time.
• The terms of and the timing of the scheme may not be representative of the lenders’ risk appetites, their general loan credit quality, or their default experience.
• Given the size of the scheme, the numbers of facilities, and the period over which they are being offered and drawn down, data being collected remains fluid and subject to refinement and correction over time (comparative analysis may therefore have limitations).
• The timing and level of claims made on the guarantee will vary according to a lender’s business model and the characteristics of their customers (for example repayment options offered, age of businesses, whether new or existing customers).
• Some lenders may be more advanced than others in operationalising their Claims and Recoveries processes which could lead to figures being distorted initially but this will stabilise over time.
• Lenders may submit guarantee claims quarterly in line with the terms of the guarantee.
• Claims on the guarantee may subsequently benefit from recovery receipts achieved at a later date (which are not reflected in the figures above), and so are not a conclusive indicator of net cost to government.
• All data excludes facilities where a scheme guarantee has been removed and the facility is no longer covered by the scheme.

This data is not suitable to be relied on by any party wishing to acquire rights against the British Business Bank group of companies (“BBB”) or any of the Recovery Loan Scheme (third iteration) guarantee scheme lenders for any purpose or in any context. Any party choosing to rely on the data detailed in this release (or any part of it) does so at its own risk. To the fullest extent permitted by law, the British Business Bank does not assume any responsibility or liability to any other party in respect of this data.

Notes

RLS 3 is open to new applications through participating lenders, who are listed on the British Business Bank website.

Further information for businesses and lenders, is available on the British Business Bank website.