RLS: government-backed loans to help you thrive, not just survive

We are an accredited provider of the government’s Recovery Loan Scheme (RLS). The initiative offers term loans of up to £10m per business or £30m per group, with the lender given a government-backed guarantee against the facility’s outstanding balance. Funds may be used for short-term needs, such as working capital or refinancing debt, or longer-term projects, such as growth capital, expanding through M&A or succession planning via MBOs or MBIs.

The essentials

  • Are you eligible?

  • Affected by Covid-19
  • Trading in the UK
  • Have a viable business proposition
  • Undergo credit and fraud checks
  • Provide evidence that you can repay
  • Our terms

  • Loan sizes range from £1m to £10m
  • Interest rates typically 7% to 11%
  • Terms of up to five years
  • Interest-only period of up to 12 months
  • Senior ranking security
  • Customise your loan

  • Fund working capital/debt refinancing
  • Use funds for growth strategies
  • Deliver your acquisition plans
  • Support succession planning
  • Cost/structure tailored to risk profile

Recovery Loan Scheme

The Recovery Loan Scheme (RLS), delivered through lenders and partners accredited by the British Business Bank, provides financial support to businesses across the UK as they recover and grow following the coronavirus pandemic.

The scheme, which enables lenders to provide facilities of up to £10m to UK SMEs, supports a range of business finance products (term loans, overdrafts, invoice finance and asset finance). Companies in all sectors are eligible, with the exception of banks, building societies, insurers and reinsurers (excluding insurance brokers); public-sector bodies; and state-funded primary and secondary schools.

In October 2021, the government announced that the scheme will be extended by six months, to 30 June 2022. The following changes will apply to all offers made from 1 January 2022:

• The scheme will only be open to small and medium-sized enterprises (those with turnover of less than £45m)
• The maximum amount available will be £2m per business or £6m per group
• The guarantee provided by the government to lenders will be reduced to 70%

A key aim of the RLS is to improve the terms on offer to businesses, but if a lender can offer a company the choice of a commercial loan on better terms, without requiring the guarantee provided by the RLS, they should do so.

Firms that borrowed from any of the government’s previous loan schemes are eligible to apply. To find out more, visit the British Business Bank’s website.



Legal notice: The Recovery Loan Scheme (RLS) is managed by the British Business Bank on behalf of, and with the financial backing of, the Secretary of State for Business, Energy and industrial Strategy (BEIS). The British Business Bank plc is wholly owned by HM Government and is not authorised or regulated by the Prudential Regulation Authority (PRA) or the Financial Conduct Authority (FCA). Full details about the RLS and the list of participating lenders can be found here.