Help with the Recovery Loan Scheme

Here's the latest information on the RLS scheme and how to ensure the best chance of approval.

What is the Recovery Loan Scheme (RLS)?

The Recovery Loan Scheme (RLS) launched on 6 April 2021 and supports access to finance for UK businesses as they recover and grow following the Covid-19 pandemic.

The scheme aims to help businesses affected by Covid-19 and can be used for business purposes, including managing cashflow, investment and growth.

Businesses who have taken out a Coronavirus Business Interruption Loan Scheme (CBILS), Coronavirus Large Business Interruption Loan Scheme (CLBILS) or Bounce Back Loan Scheme (BBLS) facility are able to access the new scheme.

The Recovery Loan Scheme is currently open to businesses of any size to support them to access loans and other kinds of finance so they can recover after the pandemic and transition period. Up to £10 million is available per business. The actual amount offered and the terms are at the discretion of participating lenders.

The government guarantees 80% of the finance to the lender. As the borrower, you are always 100% liable for the debt.

When will the Recovery Loan Scheme (RLS) end? At Autumn Budget 2021, the government announced that the Recovery Loan Scheme will be extended by six months to 30 June 2022, with changes applying to all offers made from 1 January 2022.

Am I eligible for a Recovery loan? To receive a loan under the Government’s Recovery Loan Scheme (RLS), you’ll need to meet the following criteria:

  • Business has been impacted by coronavirus

  • Minimum of 2 years’ trading history

  • Business is trading in the UK

  • Loan is for business purposes (i.e. working capital or investment, and to support trading in the UK)

  • Annual turnover of up to £45 million

The Recovery Loan Scheme supports access to finance for UK businesses as they grow and recover from the disruption of the COVID-19 pandemic.

Other criteria that you need to show that your business:

  • would be viable were it not for the pandemic

  • has been adversely impacted by the pandemic

  • is not in collective insolvency proceedings (unless your business is in scope of the Northern Ireland Protocol in which case different eligibility rules may apply)

Business that received support under the earlier COVID-19 guaranteed loan schemes are still eligible to access finance under this scheme if they meet all other eligibility criteria.

Who cannot apply Businesses from any sector can apply, except:

  • banks, building societies, insurers and reinsurers (but not insurance brokers)

  • public-sector bodies

  • state-funded primary and secondary schools

What you can get

  • term loans or overdrafts of between £25,001 and £10 million per business

  • invoice or asset finance of between £1,000 and £10 million per business

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

How long the loan is for The maximum length of the facility depends on the type of finance you apply for and will be:

  • up to 3 years for overdrafts and invoice finance facilities

  • up to 6 years for loans and asset finance facilities

Changes from 1 January 2022 At Autumn Budget 2021, the Chancellor announced that the Recovery Loan Scheme would be extended until 30 June 2022.

From 1 January 2022, the following changes will come into force:

  • The scheme will only be open to small and medium sized enterprises

  • The maximum amount of finance available will be £2 million per business

  • The guarantee coverage that the government will provide to lenders will be reduced to 70%

These changes will apply to all offers made from 1 January 2022.

How to apply Purple Accounts is a Master Certified Advisor with Capitalise and can help and support your application to ensure the best chance of approval.

You can find out more by:

Visiting our funding page and download the guide


call 01925 979500 to arrange a chat about funding.