Help for small businesses to recover and grow

On the 20th July 2022 the UK Government announced that the Recovery Loan Scheme (RLS) will stick around for an extra two years. Helping small businesses just like yours juggle their post-pandemic ramp up with new pressures like increased costs and rising inflation.

The Recovery Loan Scheme extension means ongoing access to between £1,000 and £2 million in affordable funding through term loans, overdrafts, asset finance and invoice finance until June 2024. 

Key facts

RLS applications are open till June 2024

£25,001 to £2 million available per business as term loan or overdraft

£1,000 and £2 million as invoice finance or asset finance

Personal guarantees required

Types of business finance that will be available under RLS

term loan

A straightforward cash injection you pay back over time. You might use a loan for R&D, moving to a new premises, or refinancing an existing loan

invoice finance

Speed up your business cashflow by getting an advance on money owed to you in invoices, without waiting for debtors to pay you  

asset finance

A loan designed for purchasing assets for your business. You might upgrade your equipment, tech, or invest in machinery


Lets you spend beyond your business account balance. Sometimes referred to as a Revolving Credit Facility

Recovery Loan Scheme updates

There aren’t many changes to the Recovery Loan Scheme since 2022. The key updates you need to know are that lenders will now ask for a personal guarantee, regardless of the amount of funding applied for. 

The maximum amount of funding available through the Recovery Loan Scheme hasn’t changed. Businesses will still be able to borrow up to £2 million.

How can I apply for RLS?

Applications for the Recovery Loan Scheme are open until June 2024. 

To apply, simply sign up or login to your Capitalise for Business account. From here you can see how much you could be eligible to borrow and start your funding application. 

Alongside dedicated support from a funding specialist, you will be able to apply up to 4 lenders in just one application

Repaying your Recovery Loan

The Recovery Loan Scheme is backed by the UK government. This means that the government will guarantee 70% of the loan for the lender. This does not mean the borrowing business is not liable. In fact the borrower will always be responsible for repaying the loan in full. If for a legitimate reason the business cannot repay, the government will repay the lender up to 70%. 

Repayments for the Recovery Loan Scheme will start from month one of the loan. Your monthly repayments will be clearly laid out in the terms of the loan offer, if you receive one. The repayments for RLS start from month one. 

The decision to lend is at the lender's discretion. Lenders will likely only choose to lend if there is a clear affordability shown to support the loan. 


Maximum 25% of turnover

Loans in the scheme are limited to a maximum of 25% of 2019 turnover or £10m, whichever is lower. 

Revenue from 'trading activities'

At least 50% of revenue must be from ‘trading activities’ this excludes rental income.

For UK-based businesses

Be UK-based in its business activity, with an annual turnover of no more than £45m.

Nature of business

Banks, building societies, public sector bodies and state funded primary and secondary school are not eligible 


Once lenders have been approved by The British Business Bank you'll be able to apply for RLS funding directly from within the Capitalise platform. 

Please be aware that some lenders may request additional information but this list is the minimum we need to be able to determine which lenders are
most appropriate:

• Loan amount, purpose, and term
• A short paragraph on the business background and how it has been impacted by Covid-19
• Last 2 full sets of filed accounts
• Last 12 months bank statements (PDF format & no older than 7 days)
• Shareholder & directors details - name, DOB and home address
• Up to date management accounts
• Current debt position of existing loans, facilities etc

You could use a Recovery Loan for the following business loan products: 

  • Term loans
  • Overdraft
  • Asset finance
  • Invoice finance.

With a Recovery Loan, term loans and asset finance facilities are available for up to six years. Business overdrafts and invoice finance are available on term lengths for up to three years.

Yes, a Recovery Loan can sit alongside existing government-supported facilities without the need to refinance - if below the maximum facility limit. Anything borrowed under CBILS or CLBILS will count towards a business’ maximum amount.

Yes, subject to meeting the scheme eligibility requirements and provided they do not borrow more than what the business is entitled to.

Eligibility is very similar to CBILS.

Provided other criteria are met, RLS is open to:

  • sole traders;
  • corporations;
  • limited partnerships;
  • limited liability partnerships;
  • co-operatives and community benefit societies; and
  • any other legal entity carrying out business activity in the UK with business activity operating through a business account.

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 PRA or the FCA. Visit for more information.