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New Recovery Loan Scheme


After the Easter break and the Prime Minister’s announcement on Monday night that things will slowly start to be unlocked in England, there seems to be a little more hope in the air, including for businesses.


According to the NACFB (National Association of Commercial Finance Brokers) businesses have benefitted from a total of 1,630,155 BBLS (Bounce Back Loan Scheme) and CBILS (Coronavirus Business Interruption Loan Scheme) loans worth approximately £75.1 billion to support their cash flow during the pandemic.

The schemes (BBLS and CBILS) ended on 31st March 2021 and the Government have now amalgamated the following loan schemes:

  • BBLS – loans of £2,000 to £50,000
  • CBILS – loans up to £5 million
  • CLBILS (Coronavirus Large Business Interruption Loan Scheme) – loans up to £200 million

and have created the new Recovery Loan Scheme (RLS). Launched to provide additional finance to those businesses that need it, with loans ranging up to a maximum of £10 million, the new scheme will run until 31 December 2021.


This new Recovery Loan Scheme is intended to ensure that all businesses will continue to benefit from Government guaranteed finance through 2021. The RLS can be used as an additional loan on top of previous support received and is being introduced to help provide support to viable businesses and to promote success, including to those businesses positively impacted by the pandemic.


The Chancellor of the Exchequer, Rishi Sunak, said:

“We have stopped at nothing to protect jobs and livelihoods throughout the pandemic and as the situation has evolved, we have ensured that our support continues to meet businesses’ needs.

“As we safely reopen parts of our economy, our new Recovery Loan Scheme will ensure that businesses continue to have access to the finance they need as we move out of this crisis.”


Overview of the RLS

  • The Government will provide a guarantee to the lender at 80% of the outstanding balance of the loan, however the borrower will always be 100% liable for the debt.
  • Unlike CBILS and BBLS there will be no interest free period and the Government will not pay any of the upfront lender fees.
  • The customer will need to pay the lender any fees associated with the loan.
  • Businesses can choose from a variety of products such as term loans, overdrafts, asset finance and invoice finance.
  • Up to £10 million is available per business. The minimum funding is £1,000 for asset finance and invoice finance and £25,001 for term loans and overdrafts.
  • The total amount offered will be at the discretion of the lender based on underwriting criteria including credit checks.
  • Maximum length of term for the loan is 6 years.
  • All applications will undertake a full credit assessment and the RLS will be available through a network of accredited lenders.
  • The total annual interest rate including all fees has been capped at 14.99% and Ministers are urging lenders to keep rates down to help protect jobs.
  • Businesses can also refinance part of their existing debt using the RLS
  • There is no minimum annual turnover restrictions.
  • Personal guarantees are not permitted up to a loan of £250,000 and a borrower’s private residence cannot be used as security.


If you are unsure how an RLS could benefit your business, please contact us at Funding Track on 020 3857 3030 and we will work with you to find the best possible solution.