Recovery Loan Scheme
The Recovery Loan Scheme supports access to finance for small and medium sized UK businesses, so they can grow and invest.
The Recovery Loan Scheme supports small and medium sized businesses to access the finance they need to grow and invest. Finance can be used for any legitimate business purpose, including working capital or investment.
The scheme makes available:
- up to £2 million per business group
- up to £1 million for business groups in scope of the Northern Ireland Protocol
The actual amount and terms offered are at the discretion of participating lenders.
The government guarantees 70% of the finance to the lender. As the borrower, you are always 100% liable for the debt.
Loans are available through a network of accredited lenders, listed on the British Business Bank’s website.
Lenders should only offer finance through the Recovery Loan Scheme if they are unable to offer a facility on better terms without the guarantee.
Eligibility
You may be eligible for a loan through the Recovery Loan Scheme if your business:
- is trading in the UK
- has a turnover of £45 million or less
You need to show that your business:
- is viable
- is not in difficulty
Businesses that received support under the earlier COVID-19 loan guarantee schemes and earlier phases of the Recovery Loan Scheme are eligible to access finance under this scheme if they meet all other eligibility criteria.
Charities and further education colleges that generate not more than 50% of their turnover from trading activity must confirm they have been impacted by COVID-19 in order to be eligible for the scheme. There is no requirement for any other sectors to have been impacted by COVID-19.
Who cannot apply
Businesses from any sector can apply, except:
- banks, building societies, insurers and reinsurers (but not insurance brokers)
- public sector bodies
- state funded primary and secondary schools
What you can borrow
- term loans or overdrafts of between £25,001 and £2 million per business group
- term loans or overdrafts of between £25,001 and £1 million for businesses in scope of the Northern Ireland Protocol
- invoice or asset finance of between £1,000 and £2 million per business group
- invoice or asset finance of between £1,000 and £1 million for businesses in scope of the Northern Ireland Protocol
Lenders may take personal guarantees for facilities of all sizes. A borrower’s principal private residence cannot be taken as security.
How long the facility is for
The maximum length of the facility depends on the type of finance you apply for and will be:
- up to 6 years for loans and asset finance facilities
- up to 3 years for overdrafts and invoice finance facilities
Find out more
Find a lender accredited to offer Recovery Loans from the list on the British Business Bank website:
More information for businesses about the scheme is also available on the British Business Bank site.
Subsidy
Facilities provided through the Recovery Loan Scheme are financial help that give an advantage to the business that receives them.
RLS facilities provided to businesses not in scope of the Northern Protocol are permitted as Small Amounts of Financial Assistance under Article 365(3) of the EU-UK Trade and Cooperation Agreement.
RLS facilities provided to businesses in scope of the Northern Ireland Protocol are subject to the De Minimis Regulation. The De Minimis Regulation sets a threshold for State aid that can be provided to businesses, below which there is no need to seek European Commission approval.
In both instances, there is a maximum amount that can be paid to a single undertaking over a 3 fiscal year period. If you have received eligible subsidies, the maximum you can access through the Recovery Loan Scheme may be lower than the maximum amounts listed above.
If you accessed facilities through the Coronavirus Business Interruption Loan Scheme, the Coronavirus Large Business Interruption Loan Scheme, or the versions of the Recovery Loan Scheme that ran from 6 April 2021 to 30 June 2022, this will not count toward your cumulative aid allowance when calculating the maximum amount you can access through the Recovery Loan Scheme.
If you took out a Bounce Back Loan, it may count towards your cumulative aid allowance when calculating the maximum amount you can access - you will have been informed by your Bounce Bank Loan Scheme lender at the time if your Bounce Back Loan was provided under the De Minimis Regulation.
The Recovery Loan Scheme previously ran from 6 April 2021 until 30 June 2022. The changes to the scheme do not apply to existing facilities offered between these dates.
More information for businesses about the scheme is also available on the British Business Bank site.
Updates to this page
Last updated 31 August 2022 + show all updates
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The Recovery Loan Scheme has been extended.
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Updated the guidance
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First published.