Recovery Loan Scheme

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.

RLS aims to help businesses affected by Covid-19 and can be used for business purposes, including, managing cashflow, investment and growth. It is designed to support businesses that can afford to take out additional finance for these purposes. Businesses who have taken out a CBILS, CLBILS or BBLS facility are able to access the new scheme. 

The Scheme will run until 31 December 2021, subject to review.

Core Scheme Features

  • Up to £10m facility per business: The maximum amount of a facility provided under the scheme is £10m per business (maximum £30m per group). Minimum facility sizes start at £25,001 for term loans
  • Term Length: Term loans are available from three months, for up to six years
  • Interest and fees to be paid by the borrower from the outset: Businesses are required to meet the costs of interest payments and any fees associated with the RLS facility
  • Access to multiple Covid-19 schemes: Businesses that have taken out a CBILS, CLBILS or BBLS facility are able to access the new scheme although the amount they have borrowed under a previous scheme may in certain circumstances limit the amount they may borrow under RLS
  • Personal Guarantees: Personal guarantees are not permitted for facilities of £250,000 or less. Above £250,000 the maximum amount that can be covered under RLS is capped at a maximum of 20% of the outstanding balance of the RLS facility after the proceeds of business assets have been applied. No personal guarantees can be held over Principal Private Residences
  • Guarantee to the Lender: The scheme provides the lender with a government-backed guarantee against the outstanding balance of the facility. The borrower always remains 100% liable for the debt

Is my business eligible?

There is no restriction on turnover to access the scheme, however to be considered eligible for RLS, your business must be:

  • Covid-19 impacted
  • UK-based, carrying out trading activity in the UK 
  • Not operating in one of the following sectors:
    • Banks, Building Societies, Insurers and Reinsurers (excluding Insurance Brokers)
    • Public sector bodies
    • State funded primary and secondary schools

Further eligibility assessments apply (including additional criteria if your business, or any business within your Group, have operations in Northern Ireland). A full eligibility assessment will be completed as part of any RLS application. 

Please note that RLS availability is subject to individual credit assessment and the right to decline is reserved.

Next steps

If, following an application for business lending, our Relationship Team think that an RLS may be an option for you to consider, they will raise this option with you at that time.

Important

Please be aware that RLS will provide an 80% UK Government-backed guarantee on any individual loan. However, your business will always remain responsible for repayment of the whole of the debt.

Personal guarantees are not permitted for facilities of £250,000 or less. Above £250,000 the maximum amount that can be covered under RLS is capped at a maximum of 20% of the outstanding balance of the RLS facility after the proceeds of business assets have been applied. No personal guarantees can be held over Principal Private Residences.

Any property used as security may be repossessed if you do not keep up repayments on the loan.

Business Finance Support

The British Business Bank has a range of guidance and resources available to all businesses, including content on managing your cashflow and a list of independent advice services.

Legal Notice

The Recovery Loan Scheme is managed by the British Business Bank on behalf of, and with the financial backing of, the Secretary of State for Business, Energy & Industrial Strategy. British Business Bank plc is a development bank wholly owned by HM Government. It is not authorised or regulated by the PRA or the FCA. Visit http://www.british-business-bank.co.uk/recovery-loan-scheme

British Business Bank

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