Recovery Loan Scheme UK
Set to end July 2024, the latest version of the Government-backed Recovery Loan Scheme (RLS) supported business growth with up to £2 million in finance. For support post-July 2024, head to our Growth Guarantee Scheme page.
What was the Recovery Loan Scheme?
Government-backed scheme
The RLS was a government-backed scheme that provided businesses with access to finance for investment and growth.. It offered facilities of up to £2 million for eligible businesses outside the “Northern Ireland Protocol”, and up to £1 million for eligible businesses inside the “Northern Ireland Protocol”.
Terms of up to six years
Over 50 accredited lenders offered RLS facilities with terms of up to six years. The government offered lenders a 70% guarantee against the balance of the loan. The Recovery Loan Scheme will end 1st July 2024.
Launched on 1 April 2021
The RLS launched on 1 April 2021 to help businesses recover from the impact of the Covid-19 pandemic. It replaced the CBILS, CLBILS and BBLS. Loans of up to £10m were available and the government guarantee stood at 80%.
Amended in 2022
In 2022, the RLS was amended, with up to £2m available to SMEs and a 70% government guarantee. Although the scheme ended in June 2022, it was soon relaunched for another two years to help SMEs raise finance.
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Is my business eligible for an RLS loan?
Apply before 1st July 2024
To obtain an RLS loan you must apply before 1st July 2024. Furthermore, recovery Loan Scheme eligibility depends on a number of factors.
Have a turnover of up to £45m
Your business must: have a turnover of up to £45m (on a group basis, where part of a group), be carrying out trading activity in the UK and, in the majority of cases, generating more than 50% of income from trading activity, and have a viable business proposition (the lender may disregard concerns over your business’s short-to-medium term business performance due to the uncertainty and impact of Covid-19).
Business can't be in difficulty
Your business is not eligible if: it is a ‘business in difficulty’, e.g it cannot be in relevant insolvency proceedings. You will also be required to confirm that the RLS facility you’re applying for won’t push your business over the maximum amount of subsidy it can receive.
Legal entity carrying out business activities in the UK
As long as you meet the eligibility criteria, you can apply to the RLS if you are a: sole trader, corporation, limited partnership, limited liability partnership, co-operative and community benefit society, or any other legal entity carrying out business activity in the UK.
How much can you afford to borrow?
If you're ready to take your business to the next level, use our business loans calculator to get an idea of what you can afford.
Want to understand the cost of your loan?
Use our business loan calculator below to find out how much you can borrow to take your business to the next level.
Calculations are indicative only and intended as a guide only. The figures calculated are not a statement of the actual repayments that will be charged on any actual loan and do not constitute a loan offer.
Monthly payments
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Total interest
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Financial product information
Representative example*
• 7.63% APR Representative based on a loan of £50,000 repayable over 24 months.
• Monthly repayment of £2,252.94. The total amount payable is £54,070.56
*Some lenders may apply fees during the application process, please note that these are set and provided by these entities.
Annual Percentage Rates
Rates from 2.75% APR
Repayment period
1 month to 30 years terms
How did the Recovery Loan Scheme work?
Certain forms of finance
The RLS offered business finance in the following forms: term loans, overdrafts, asset finance and invoice finance. (However, it’s worth noting that not all lenders were able to offer all finance types).
100% liable for the debt
Anyone who took out an RLS facility was 100% liable for the debt.
Two years of financial accounts
When applying for an RLS loan, applicants were typically required to provide two years of financial and management business accounts, as well as bank statements and cash flow forecasts. The speed from application to drawdown depended on the individual application.
How much could applicants borrow?
£2 million
Up to £2 million was available to each business group for borrowers outside the scope of the “Northern Ireland Protocol."
£1 million
Up to £1 million was available to each business group inside the scope of the protocol.
Minimum amounts
Minimum facility sizes also applied: asset and invoice finance started at £1,000 per facility, with term loans and overdrafts starting at £25,001.
Learn more about the Recovery Loan Scheme
What can the funds be used for?
Applicants could use their RLS finance for any legitimate business purpose, such as:
Cash flow management
Growing your business
Investing in an area of your business
Paying for a one-off expense
Purchasing equipment
Supporting payroll
What was the Recovery Loan Scheme interest rate?
The interest rate and fees on an RLS facility depended on the lender and the applicant's individual circumstances. According to the British Business Bank, the annual effective rate of interest and upfront and other fees couldn’t exceed 14.99%.
What term lengths were available?
Term lengths depended on the type of finance facility chosen.
For term loans and asset finance, the minimum term length was three months and the maximum term length was six years. For overdrafts and invoice finance, the minimum term length was three months and the maximum term length was three years.
Can I apply for the Recovery Loan Scheme if my business had a Bounce Back Loan or borrowed under CBILS or CLBILS?
Yes, up until July 1st 2024, you can apply if your business has other business recovery loans, such as the BBLS, CBILS, CLBILS or RLS facility (however, in some instances it might reduce the amount your business can borrow).
The lender will carry out their standard credit and fraud checks.
Will I need a personal guarantee?
Personal guarantees can be taken at the lender’s discretion, as per its usual lending practices. Principal Private Residences can’t be taken as security under the RLS. Also, if the lender can offer finance on normal commercial terms without having to use the scheme, it might do so.
What other options are there?
If you’ve missed the 1st July 2024 deadline, there are plenty of other options to support your business goals including a similar scheme called the Growth Guarantee Scheme. You can find out more about this scheme by clicking here. Alternatively, we can help match you with term loans, overdrafts, asset finance and invoice finance, as well as:
Apply for a business loan
You can use Funding Options to apply for business finance. It’s quick and easy – just start by telling us how much finance you need, what it’s for and how quickly you need it. Start your funding journey with us today!
Please note that the information above is not intended to be financial advice. You should seek independent financial advice before making any decisions about your financial future.
It’s important to remember that all loans and credit agreements come with risks. These risks include non-payment and late-payment of the agreed repayment plan, which could affect your business credit score and impact your ability to find future funding. Always read the terms and conditions of every loan or credit agreement before you proceed. Contact us for support if you ever face difficulties making your repayments.
Funding Options, now part of Tide, helps UK firms access business finance, working directly with businesses and their trusted advisors. Funding Options are a credit broker and do not provide loans directly. All finance and quotes are subject to status and income. Applicants must be aged 18 and over and terms and conditions apply. Guarantees and Indemnities may be required. Funding Options can introduce applicants to a number of providers based on the applicants' circumstances and creditworthiness. Funding Options will receive a commission or finder’s fee for effecting such finance introductions.
