Recovery Loan Scheme extended

A vital lifeline has been thrown to smaller businesses with the extension of the Recovery Loan Scheme (RLS).

Over £1bn has already been offered through the Scheme, which now runs until 30 June 2022. The finance can be used for any legitimate business purpose, including managing cashflow, investment and growth.

However, from 1 January, the following changes apply:

  • the Scheme will only be open to small and medium sized enterprises with a turnover of less than £45m;
  • the maximum amount of finance available will be £2 million per business (maximum amount per Group limited to £6m); and
  • the guarantee coverage that the government will provide to lenders will be reduced to 70%.

A list of lenders accredited by the British Business Bank can be found at british-business-bank/ourpartners.

It’s important to note that the Scheme aims to improve the terms on offer, but if a lender can offer you a commercial loan on better terms – without requiring the guarantee provided the RLS – you should consider that instead.

RLS gives the lender a government-backed guarantee against the outstanding balance of the facility. But remember that, as the borrower, you are always 100% liable for the debt.

Full details at

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