Recovery Loan Scheme

Government-backed revolving credit facilities

Growth Lending was an accredited provider of the government’s initial Recovery Loan Scheme (RLS), which was open to applications until June 30 2022.

The initiative offered revolving credit facilities of up to £2m per business or £6m per group, with the lender given a government-backed guarantee against the facility’s outstanding balance. Funds could be used for short-term needs, such as working capital or refinancing debt, or for longer-term projects, such as growth capital, expanding through M&A or succession planning via MBOs or MBIs.

Are you eligible?

  • Affected by Covid-19
  • B2B business trading in the UK
  • Have a viable business proposition
  • Undergo credit and fraud checks
  • Provide evidence that you can repay
  • Annual turnover over £500,000 but not exceeding £45m

Customise your loan

  • Facilities may cover working capital
    or debt refinancing
  • Use funds for growth strategies
  • Deliver your acquisition plans
  • Support succession planning
  • Cost and structure are tailored to your risk profile

How it works

The Recovery Loan Scheme (RLS) launched on 6 April 2021 and supports access to finance for UK businesses as they recover and grow following the Covid-19 pandemic.

RLS aims to help businesses affected by Covid-19 and can be used for business purposes, including, managing cash flow, investment and growth. It is designed to support businesses that can afford to take out additional finance for these purposes. Businesses who have taken out a CBILS, CLBILS or BBLS facility are able to access the new scheme.

A key aim of the Recovery Loan Scheme is to improve the terms on offer to businesses, but if a lender can offer a business the choice of a commercial loan on better terms, without requiring the guarantee provided by the RLS, they should do so.

At Autumn Budget 2021, the government announced that the Recovery Loan Scheme will be extended by six months to 30 June 2022, with changes applying to all offers made from 1 January 2022.

Scheme features:

  • The maximum amount of a facility provided under the scheme is £2m per business or £6m per group
  • Businesses are required to meet the costs of interest payments and any fees associated with the RLS facility
  • Businesses that have taken out a CBILS, CLBILS or BBLS facility are able to access the new scheme although the amount they have borrowed under a previous scheme may, in certain circumstances, limit the amount they may borrow under RLS
  • Personal guarantees are not permitted for facilities of £250,000 or less. Above £250,000 the maximum amount that can be covered under RLS is capped at 20% of the outstanding balance of the RLS facility after the proceeds of business assets have been applied. No personal guarantees can be held over Principal Private Residences.

 To find out more, visit the British Business Bank’s website or read its Guide to Managing Business Debt.

Legal notice: The Recovery Loan Scheme is managed by the British Business Bank on behalf of, and with the financial backing of, the Secretary of State for Business, Energy & Industrial Strategy. British Business Bank plc is a development bank wholly owned by HM Government. It is not authorised or regulated by the Prudential Regulation Authority (PRA) or the Financial Conduct Authority (FCA). Visit for more information.