Recovery Loan Scheme

Getting your finances back on track

Financial Freedom written on rural road

Your company is no doubt eager to begin increasing its post-Covid operations. But as initial trading opens, your expenses are likely to precede revenues and working capital requirements will be tighter.

This is likely to leave you in a tight cash position and in need of extra funds to kickstart your recovery and long-term prosperity. The new RLS is a useful route to finance.

This is available until 30th June 2022 and open to UK trading businesses of all sizes. The scheme allows your business to access up to £10 million in finance, if you 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: Your business is eligible even if they have already taken out a loan under CBILS or BBLS.

The benefits of the Recovery Loan Scheme

  1. The RLS scheme is available until the 30th June 2022, giving your business
    a boost to its working capital and the health of your balance sheet.
  2. You can borrow between £25,001 and £10 million per business in the form
    of a term loan or overdraft.
  3. Alternatively, you can borrow between £1,000 and £10 million per business
    in the form of invoice finance or asset finance.
  4. Provides favourable terms when compared to other funding solutions, APR
    capped at 14.99%.

How does the recovery loan scheme differ from CBILs?

What has stayed the same?

  • No personal guarantees up to £250k.
  • Same criteria for UK trading companies, being a viable business that is not in financial difficulty.
  • Public sector, banks, building societies, insurers and reinsurers, and state funded primary and
    secondary schools cannot apply.
  • 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.
  • The government guarantees 80% of the finance to the lender to ensure they continue to have
    confidence to lend.
  • A borrower’s principal private residence cannot be taken as security.

What is different?

  • From 1st January 2022 the personal guarantee changes from 80% to 70%.
  • Interest and fees will be paid by the business from the outset: companies would be required to
    meet the costs of interest payments and any fees associated with the facility.
  • Starts from £25k and goes up to £10m.
  • No turnover limit for applications (£45m previously).
  • No more secured product, which means that property can no longer be funded.
  • A business can apply for the Recovery Loan Scheme even if it has an existing BBL, CBIL or
    Coronavirus Large Business Interruption Loan (CLBIL)

Should you apply?

If you’re looking to strengthen your balance sheet and raise additional finance, the RLS is potentially 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 invoices

If any of the above is of interest to you, please contact your client account manager and we will share with you a funding enquiry questionnaire.


Tennick support packages



What it includes:

  • Keep you compliant 
  • Provide you with a dedicated HMRC point of contact


What it includes:

  • Real-time information
  • Cash flow management
  • Financial roadmap


What it includes:

  • Real-time business insights
  • Financial and retirement roadmap
  • Accountability and strategic direction