Recovery Loan Scheme

The RLS aims to provide SMEs with access to finance during the UK's post-pandemic economic recovery. The latest iteration is set to start in August 2022 and run for 2 years. Apply for alternative finance today.

Recovery Loan Scheme


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As it stands, lenders do not yet have access to the government loan scheme and are awaiting further information regarding their accreditation. As soon as we have further information we will update this page.

What is the Recovery Loan Scheme?

On 20 July 2022, the Government announced the latest iteration of the Recovery Loan Scheme (RLS), which is set to run from 1 August 2022 until 30 June 2023. 

Lenders will primarily use the Recovery Loan Scheme to fund businesses they previously couldn't. This could be due to their credit score, trading time, turnover or homeowner status. In other words, If you're considered a less risky business, in most cases, they will first look to support you using their standard product selection instead of RLS. 

There's a maximum turnover of £45M, and the scheme is only available to SMEs.

Businesses operating in most sectors can apply for the Recovery Loan Scheme. You can also apply if you've already received support from the CBILS, CLBILS or BBLS initiatives. 

How does the Recovery Loan Scheme work?

To encourage more lending to UK SMEs, the Government will provide a 70% guarantee to the lender. It is worth remembering that the Government will not cover any interest and fees associated with the finance.

According to Business Secretary Kwasi Kwarteng, businesses won't need to certify that the Covid-19 pandemic has impacted them to be eligible. However, Lenders will need to certify that they wouldn't have been able to provide finance to applicants on their standard commercial terms – or that they would, but only at a higher interest rate. 

In this sense, the RLS will act as an extension of lenders' standard product range and will primarily be used to fund businesses that they previously couldn't. This could be due to their credit score, trading time, turnover or homeowner status. 

The new Recovery Loan Scheme at a glance: 

  • Available to SMEs only with a turnover cap of £45M

  • Government guarantee for lenders is 70%

  • Personal guarantees are at the lender's discretion

  • Delivered through four finance types

  • Term loans (£25,001–£2 million, up to 6 years)

  • Overdrafts (£25,001–£2 million, up to 3 years)

  • Invoice finance (£1,000–£2 million, up to 3 years)

  • Asset finance (£1,000–£2 million, up to 6 years)

Financial product information

Representative example*

7.63% APR Representative based on a loan of £50,000 repayable over 24 months. Monthly repayment of £2,252.94. The total amount payable is £54,070.56

*Some lenders may apply fees during the application process, please note that these are set and provided by these entities.

Annual Percentage Rate

Rates from 2.75% APR

Repayment period

1 month to 30 years terms

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