Recovery Loan Scheme

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Borrow up to £10 million to recover from COVID-19.

What is it?

The Recovery Loan Scheme has been set up to help businesses of any size arrange overdrafts or loans of between £25,000 and £10 million.

No personal guarantees will be taken on loans up to £250,000 and a borrower’s principal private residence can’t be taken as security.

The loan will be 80% backed by the Government, though you remain 100% liable.


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Recovery Loan Scheme (RLS)

The Recovery Loan Scheme (RLS) was launched on 6th April 2021, and aims to provide financial support for businesses to recover from the Coronavirus pandemic.

The RLS is available through lenders accredited by the British Business Bank.

The finance can be taken out in one of four ways:

  • A Loan
  • An Overdraft
  • Invoice Finance
  • Asset Fiance


The Government will guarantee 80% of the outstanding balance of the loan, though you remain 100% liable for the debt.

Lenders won’t take any form of personal guarantee on loans up to £250,000 and on loans over that amount the maximum that can be covered is capped at 20% of the outstanding balance after the proceeds of business assets have been applied.

A borrower’s principal private residence cannot be taken as a guarantee.



How much is it for?

The maximum amount covered by the scheme is £10 million per business.

The minimum amount varies depending on what form of finance you are taking. For invoice and asset financing it starts at £1,000 and for loans and overdrafts it starts at £25,001.

For loans and asset financing the length of the scheme is from three months to six years.

For overdrafts and invoice financing the length of the scheme is from three months to three years.

The maximum interest chargeable on the facility is 14.99%.

There is no turnover restriction for business accessing the scheme.

If a business has already taken out finance through a different COVID-19 related scheme, Bounce Back Loans, CBILS, or CLBILS, then the amount they can borrow through the RLS may me limited.



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Am I eligible?

You can apply to the scheme if your business:

  • has been negatively affected by COVID-19
  • is trading in the UK
  • would be viable if not for the pandemic
  • is not in collective insolvency proceedings


You can use the finance for any legitimate business purpose.

You can find potential lenders through the British Business Bank by clicking on the button above.


Kind regards Ilyas

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