Recovery Loan Scheme now open for applications

Please note: this article was published on 6th April 2021, the information below may now be out of date. For the latest information, visit our Recovery & Support Hub here.

Launching today, Tuesday 6 April 2021, the Recovery Loan Scheme (RLS) provides financial support to businesses across the UK as they recover and grow following the coronavirus pandemic.

The new scheme will support borrowing of up to £10m for individual businesses and up to £30m across a group, and can be used for any legitimate business purpose, including managing cashflow, growth and investment. It is designed to appeal to businesses that can afford to take out additional finance for these purposes.

The British Business Bank, which will administer the scheme on behalf of the Government, played an important role during the pandemic, by administering the Bounce Back Loan Scheme (BBLS), Coronavirus Business Interruption Loan Scheme (CBILS) and Coronavirus Large Business Interruption Loan Scheme (CLBILS). The new Recovery Loan Scheme will continue to support smaller businesses as they steer a path towards a sustainable recovery.

You can apply to the scheme if COVID-19 has affected your business. You can use the finance for any legitimate business purpose – including managing cashflow, investment and growth. However, you must be able to afford to take out additional debt finance for these purposes.

If your business has already borrowed from any of the other coronavirus loan schemes – namely:

– the Bounce Back Loan Scheme (BBLS)
– the Coronavirus Business Interruption Loan Scheme (CBILS)
– the Coronavirus Large Business Interruption Loan Scheme (CLBILS)

RLS is still open to you. However, the amount you’re allowed to borrow will depend on:

– the lender’s assessment of your business
– the scheme requirements

The RLS will run until 31 December 2021, though this may be reviewed.