Recovery Loan Scheme

In the Budget 2021, it was announced that a new loan scheme to help small, medium and large UK businesses called the “Recovery Loan Scheme” would replace existing Coronavirus loan schemes due to come to an end.

Recovery loan scheme

From 6 April 2021 the Recovery Loan Scheme (RLS) will provide lenders with a guarantee of 80% on eligible loans between £25,000 and £10 million to give them confidence in continuing to provide finance to UK businesses.

The new scheme will be open to all businesses, including those who have already received support under the existing COVID-19 guaranteed loan schemes.

Once received, the finance can be used for any legitimate business purpose, including growth and investment.

The Recovery Loan Scheme replaces these current Covid-19 debt schemes;

  • Coronavirus Business Interruption Loan Scheme (CBILS)
  • Coronavirus Large Business Interruption Loan Scheme (CLBILS)
  • Bounce Back Loan Scheme (BBLS)
All of the above schemes are due to come to an end on March 31, 2021

The new scheme is due to launch on April 6, 2021 and will remain open until December 31, 2021, subject to review. Loans will be available through a network of accredited lenders which can be viewed here.


You will be able to apply for a Recovery Loan if your business:

Will I be able to apply even if I have already received support from an existing Coronavirus loan?

Yes – you will still be eligible to access finance under this scheme, as long as your business meets all other eligibility criteria.

How much will I be able to borrow?

The amount your business can borrow under the RLS depends which type of finance you choose. There are two main types of finance:

  • Term loans and overdrafts will be available between £25,001 and £10 million per business.
  • Invoice finance and asset finance will be available between £1,000 and £10 million per business.

Finance terms are up to six years for term loans and asset finance facilities. For overdrafts and invoice finance facilities, terms will be up to three years.

No personal guarantees will be taken on facilities up to £250,000, and a borrower’s principal private residence cannot be taken as security.

What can the funds be used for?

Provided your loan application is successful, you can use your finance to:

How to apply for the Recovery Loan Scheme (RLS)

**UPDATE – The scheme is now OPEN. Find a lender accredited to offer Recovery Loans from the list on the British Business Bank website.

If you have any questions regarding the above scheme, please do not hesitate to contact us.

More information can be found at

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