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Recovery Loan Scheme (RLS)

The Recovery loan Scheme (RLS)

The Recovery Loan Scheme (RLS) was launched April 6th 2021. Its primary aim is to provide further financial support during the ongoing pandemic to UK businesses who require support during recovery, once lockdown ends, hopefully in June 2021. 

If the Coronavirus COVID-19 pandemic has affected your business. The finance may be therefore used for any legitimate business purpose, like 

  • Cash flow management:
  • Business investment and growth. 

However, borrowers MUST ensure they can afford the loan and its repayment..

To Qualify for an RLS

The Recovery Loan Scheme remains open to all UK businesses, except:

  1. State-funded schools,
  2. Public-sector bodies,
  3. Banks,
  4. Building societies,
  5. Insures and re-insures

Borrowers who have already received support during the pandemic. From such schemes as:

  • The Bounce Back Loan Scheme (BBLS);
  • Coronavirus Business Interruption Loan Scheme (CBILS);
  • Coronavirus Large Business Interruption Loan Scheme (CLBILS).

May still apply for the additional support through RLS. However, the amount you require further may be checked from prior loans, possibly limiting your additional borrowing.

At this stage, perhaps seeking guidance from the team at HBG Advisory may assist?

RLS continues until 31 December 2021, subject to review.

How it works

British Business Bank Accredited Lenders 

The Recovery Loan Scheme was rolled out with several lenders accredited by the British Business Bank. As new lenders become accredited, they will be listed on the British Business Bank website.

For ease of use, we list below those accredited as at May 4th, 2021.

Recovery Loan Scheme Approved lenders include: 

(Source: British Business Bank):

  • Adam & Co;
  • Aldermore;
  • Arbuthnot Latham;
  • Bank of Scotland, Barclays;
  • Clydesdale Bank;
  • Coutts;
  • Danske Bank; 
  • Ebury;
  • HSBC UK; 
  • HTB;
  • Lloyds Bank; 
  • NatWest, 
  • OakNorth Bank, 
  • Paragon;
  • Santander;
  • Scania Financial Services, 
  • SecureTrust Bank; 
  • Skipton Business Finance; 
  • Royal Bank of Scotland;
  • Ulster Bank, and 
  • Yorkshire Bank.

The primary aim of the Recovery Loan Scheme (RLS) remains to aid & improve terms offered to you. However, if a lender offers you a more favourable commercial loan with improved terms, along with no guarantee required, then the borrower is not obliged to accept the RLS.

Approach your finance broker or bank first when seeking to borrow further funds for your business. Details and the application process may be found on their website.

The option to approach other lenders remains available also (as detailed above).

Types of finance

Accredited lenders can provide up to £10 million funding through the following platforms:

  •  A term loan
  • Overdrafts
  • Invoice finance
  • Asset finance


RLS gives the lender a ‘government-backed guarantee’ against the outstanding balance of the facility. 

However, please note, as the borrower, you remain liable 100% to maintain paying the debt.

If you borrow less than £250,000?

The lender therefore then requires no personal guarantee whatsoever.

However, if you borrow £250,000 or more?

The lender has then the option to take personal guarantees. When:

  • More than £250,000, then the maximum amount that can be covered under RLS remains capped at a maximum of 20% of the outstanding balance of the RLS facility once the proceeds of business assets have been applied.
  • Lenders may not request personal guarantees secured over Principal Private Homes.

My business has been rejected for a Recovery Loan

Should your business be rejected for a Recovery loan, and your business is struggling? Please contact the team at HBG Advisory.

Many options exist for businesses to consider. Panicking will not help. HBG Advisory offer robust advice for businesses who perhaps:

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