The Recovery loan scheme

The Recovery Loan Scheme is a government loan scheme that allows qualifying businesses to borrow up to £10 million – either as term loans, overdrafts, invoice finance or asset finance. It replace the now closed Coronavirus Business Interruption Loan Scheme (CBILS) and Bounce Back Loan Scheme (BBLS).

Recovery Loan Scheme: 

Available from 6 April 2021 and open to UK trading businesses of all sizes.
The scheme allows eligible businesses to access up to £10 million in
finance, if they meet the eligibility criteria:
• 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 (unless your business is in scope of the Northern Ireland Protocol in which case different eligibility rules may apply)
NOTE: businesses are eligible even if they have already taken out a loan under CBILS or BBLS.

Benefits of the Recovery loan scheme: 

  • The Recovery loan Scheme is available between 6 April and 31 December 2021, giving clients a boost to their working capital and the health of their balance sheet.
  • Businesses can borrow between £25,001 and £10 million per business in the form of a term loan or overdraft.
  • Alternatively, businesses can borrow between £1,000 and £10 million per business in the form of invoice finance or asset finance.
  • Enhances your firm’s Capital Advisory offering, increasing client opportunities, bringing in commission payments and increasing your value as an adviser.

How much can you borrow?

The maximum facility sizes varies starting at £1,000 for asset and invoice finance, and £25,001 for term loans and overdrafts. The maximum value of a facility per business is the lesser of £10m or 25% of 2019 turnover or double the wage bill of 2019. Anything borrowed under CBILS or CLBILS will count towards a business’ maximum amount. The amount is also subject to a limit of £30m per borrower group.

Should you apply for the Recovery Loans Scheme?

If you’re looking to strengthen your balance sheet and raise additional finance, the RLS is an ideal route to extra funding.
Consider making use of the scheme if your business is:
• Aiming to improve its long-term capital position
• In need of a third-party business loan to secure its recovery
• Planning to invest in new assets and equipment
• Looking to fill a short-term cash flow gap
• In need of a new facility to reduce pressures of overdraft use
• Thinking about taking on more staff, or premises, to aid its recovery
• Limited by long payment terms with large amounts of outstanding

Minimum required information & documentation

Please be aware that some lenders may request additional information but this list is the minimum we need to be able to determine which lenders are
most appropriate:
• Loan amount, purpose, and term
• A short paragraph on the business background and how it has been
impacted by Covid-19
• Last 2 full sets of filed accounts
• Last 12 months bank statements (PDF format & no older than 7 days)
• Shareholder & directors details – name, DOB and home address
• Up to date management accounts
• Current debt position of existing loans, facilities etc


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