The Recovery Loan Scheme has launched to support UK businesses that have been affected by the COVID 19 pandemic. This government-led British Business Bank loan scheme has been brought in to replace the recently closed CBILS. The Recovery Loan Scheme (RLS) can be used by businesses that want to take out finance for reasons such as managing cashflow, investment and growth. The scheme will run from 6th April – 31st December 2021.


Some standout features of the Recovery Loan Scheme include:

  • The term loans are available for up to six years.
  • The maximum funding a business can be awarded is £10 million, with support of up to £30m per development business, and a minimum starting at £25,050.
  • It benefits from an 80% Government guarantee, which can mitigate lender risk and lower the personal liability of the borrower.
  • Registered lenders will be able to extend their risk appetite and have discussed lending parameters of up to 70% LTGDV.
  • The scheme is also available for those that have taken out a CBILS scheme. Although the amount they can borrow may be limited.
  • The borrower is responsible for all fees and interest associated with the RLS scheme.
  • No personal guarantees are available for facilities of £250,000 or below.
  • The lender has a guarantee by the scheme against any outstanding balance of the facility.



To be eligible for the Recovery Loan Scheme scheme your business must:

  • Be a viable operation
  • Have been affected by the coronavirus pandemic
  • Not be part of collective insolvency proceedings

Businesses that have already received support under the existing COVID-19 guaranteed loan schemes will still be eligible to access finance under the Recovery Loan Scheme.


As with all finance, risk is included. The borrower always remains 100% liable for the debt.

If these schemes are of interest, please get in touch with Martyn.