Help for small businesses to recover and grow

On the 20 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 RLS extension means ongoing access to between £1,000 and £2 million in affordable funding through term loans, overdrafts, asset finance and invoice finance

Here's what we know so far

Key Facts

RLS applications will be opening soon

£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 may now be 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

Key changes to RLS

So far, the UK government hasn’t released much information about changes to RLS, which starts accepting applications soon. One key change that has been mentioned, is that lenders may now ask for a personal guarantee, regardless of the amount of funding applied for.

The other fact we're sure of it the maximum amount of funding available through RLS hasn’t changed. Businesses will still be able to borrow up to £2 million through the extended scheme.

How can I apply for RLS?

Applications for the extended Recovery Loan Scheme haven’t opened just yet but we’ll update you as soon as we know more.

Once applications are open, simply log into your Capitalise for Business account to start your application.

Repaying your loan

The borrower will always be responsible for repaying the loan. The government will only repay the loan if the business cannot - up to 70%. The repayments for RLS start from month one. 

The decision to lend is at the lenders discretion. At, our view is that lenders will only lend to businesses that have recently shown affordability 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.

Don't apply straight to the RLS

The business applies for finance, the lender will then  decide whether they qualify for RLS or a business-as-usual loan.


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.