Recovery Loan Scheme

Replacing government’s initial COVID-19 loan schemes (Bounce Back Loan Scheme (BBLS) and Coronavirus Business Interruption Loan Sceme (CBILS), The Recovery Loan Scheme ensures businesses of any size can continue to access loans and other kinds of finance up to £10 million per business.

It was announced at the Autumn Budget that the Recovery Loan Scheme would be extended until 30 June 2022.

Designed to provide support as businesses recover and grow following the disruption of the pandemic and the end of the transition period, the finance can be used for any legitimate business purpose, including growth and investment.

The government guarantees 80% of the finance to the lender to ensure they continue to have the confidence to lend to businesses.

What type of finance is available?

  • 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.

As of 1 January 2022, the following changes will come into force:

  • The maximum amount of finance available will be £2 million per business
  • The guarantee coverage that the government will provide to lenders will be reduced to 70%


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

  • Is trading in the UK
  • Is viable or would be viable were it not for the pandemic
  • Has been impacted by the coronavirus pandemic
  • Is not in collective insolvency proceedings – further details will be provided in due course

Business that have received support under the existing COVID-19 guaranteed loan schemes are still be eligible to access finance under this scheme, if they meet all other eligibility criteria.

As of 01 January 2022, the following changes will come into force:

  • The scheme will only be open to small and medium sized enterprises

Who cannot apply?

Businesses from any sector will be eligible to apply, except:

  • Banks, building societies, insurers and reinsurers (but not insurance brokers)
  • Public-sector bodies
  • State-funded primary and secondary schools

How do businesses apply?

  1. Find a lenderChoose an RLS accredited lender.
  2. Approach a lender – You should approach a lender yourself, ideally via its website.
  3. The lender makes a decision – Please note that Recovery Loan Scheme-backed facilities are provided at the discretion of the lender.

Accredited lenders in the region

Find out more