Recovery Loan Scheme
Support for small businesses feeling the squeeze
– the Government’s new Recovery Loan Scheme (RLS3) runs until June 2024.
The Recovery Loan Scheme provides access to funding for UK small businesses.
- Facilities available from £25,000 – £2M
- Use for any legitimate business purpose including, but not limited to, managing cashflow, investment and growth
- Businesses that have previously taken out Government-backed lending can apply
- No Covid-19 impact test is required, unlike previous versions of the loan
- Lenders may disregard any concerns over short-to-medium-term business performance due to the uncertainty and impact of Covid-19.

Key facts:
- RLS supports a range of products, including term loans, asset finance and invoice finance facilities
- Finance available up to £2 million per business group
- Minimum facility sizes vary, starting at £1,000 for asset and invoice finance, and £25,000 for term loans
- You must be trading in the UK and have a turnover of £45 million or less
How it works:
Term length:
Term loans and asset finance facilities are available from three months up to six years, with invoice finance available from three months up to six years. A term extension beyond six years, up to a maximum of 10 years for existing RLS facilities can be made at the discretion of the lender.
Personal Guarantees:
Personal guarantees can be taken at the lender’s discretion, in line with their normal commercial lending practices. Principal Private Residences cannot be taken as security within the Scheme.
- The Scheme provides the lender with a government-backed, partial guarantee against the outstanding balance of the finance.
- The borrower always remains 100% liable for the debt.
- Lenders are required to undertake their standard credit and fraud checks for all applicants.
You need to show that your business:
– is viable
– is not in difficulty
⇒ Nearly 19,000 businesses have been supported since the scheme was originally launched in April 2021!
RLS is open to:
- Sole traders
- Corporations
- Limited partnerships
- Limited liability partnerships
- Co-operatives and community benefit societies
- Any other legal entity carrying out business activity in the UK.
NOTE: RLS aims to improve the terms on offer to borrowers. But if a lender can offer finance on better terms, they will do so. Alternative options may provide a better deal than RLS and it is easy to find out more by contacting us.