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

We were an accredited provider of the government’s initial Recovery Loan Scheme (RLS),
which closed for new applications on 30 June 2022.

The initiative offered term loans of up to £2m per business or £6m 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
  • Annual turnover not exceeding £45m
  • Our terms

  • Loan sizes up to £2m
  • 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) 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 cash flow, 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.

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

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.

Scheme features:

  • The maximum amount of a facility provided under the scheme is £2m per business or £6m per group
  • Businesses are required to meet the costs of interest payments and any fees associated with the RLS facility
  • 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 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 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.

 To find out more, visit the British Business Bank’s website or read its Guide to Managing Business Debt.



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 Prudential Regulation Authority (PRA) or the Financial Conduct Authority (FCA). Visit http://www.british-business-bank.co.uk/recovery-loan-scheme for more information.