Recovery Loan Scheme – what you need to know

The Recovery Loan Scheme (RLS), introduced in the Spring Budget, provides access to loans and other kinds of financial support that will enable businesses to recover from the disruption of the COVID-19 pandemic.


As other business recovery loans introduced by the Government, such as Coronavirus Interruption Loan Scheme (CBILS) and the Bounce Back Loans (BBLS), have now ended, the RLS is an opportunity for businesses to apply for funding for term loans, overdrafts, invoice finance and asset finance, to help support the recovery from the pandemic and the transition out of the lockdown period.

David Wright, Head of Commercial Finance at DJH Mitten Clarke believes that “As the UK Economy continues along the road to recovery, options such as the Recovery Loan Scheme will provide much-needed support in helping businesses recover and prosper by providing access to finance”.

We’ve detailed below what the Recovery Loan Scheme is, how it would benefit your business and how can DJH Mitten Clarke help.

Can I apply for the Recovery Loan Scheme?

The RSL is open to all businesses as long as they fit the following criteria:

  • Are able to demonstrate that their business has been negatively impacted by Covid-19.
  • Are UK based.
  • Are engaged in trading activity in the UK.
  • Are a viable business, or would if not impacted by the pandemic.

Lenders may disregard the concerns of the businesses short and medium-term viability due to the disruption of the Covid-19 pandemic, however, they are not required to do this.

How much finance is available through the Recovery Loan Scheme?

Up to £10 million is available per business from accredited lenders.  The actual amount offered, and the terms of the loan, are at the discretion of the participating lenders.

The minimum amounts vary depending on the type of financial support the business is looking for, starting at £1,000 for asset and invoice finance, and £25,001 for businesses applying to take out a business loan.

How long do we get to pay it back?

A repayment term of 3 months to 6 years is available for loans and asset finance facilities, whereas a smaller term (3 months to 3 years) is available for overdrafts and invoice finance facilities.

Repayment of the RLS will depend on each lender and repayments will commonly start a month after taking the loan and be a monthly repayment thereafter.

How can we help?

We want to make your life easier, so pulling everything you need together to make an application for the Recovery Loan Scheme is definitely something we can help with.

The main thing that lenders will require is evidence that you can repay the loan and will require these key supporting documents before they make a decision:

  • Management Accounts
  • Business Plan
  • Historic Accounts
  • Business Assets

Our business planning service will help provide clear objectives for your business, a detailed overview of your products and services, market share and strategy, and an explanation of why you need finance. Our relationships with lenders also help us know exactly what they are looking for from those businesses applying for finance.

You may be unsure whether this type of business recovery loan is the right step for you, that’s why a thorough cash flow forecast  will help provide a detailed explanation of where you are now, where you want to be in the future, and help identify any future pressure points before they become a problem. This will then give you the ability to make the right decision for your business.

If you’d like to talk it through with us and get some initial advice on the next steps, please give your Client Manager a call on 01782 279615.

Full information on the Recovery Loan Scheme can be found on the and British Business Bank websites.

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