Recovery Loan Scheme (RLS)


What is the Recovery Loan Scheme?

Available from 6th April 2021, PFC Finance could help you secure your Government Recovery Loan through a range of lenders.

The Recovery Loan Scheme, or RLS, is a loan product backed by the Government. Here at PFC Finance we are specialising in helping people with the Recovery Loan Scheme. The minimum loan size is £25,001 and is from 3 months to 6 years. These are the key features:

  • No personal guarantees.
  • No minimum turnover required to apply.
  • No need to pay back any CBILS or Bounce Back Loans if they have already been taken.

Don’t worry if you are not eligible for the RLS we have other loan products that could help you.

Call us today for more details on 01829 738 799 and discover how we can help you.

Please complete our Recovery Loan Scheme (RLS) enquiry form

Finance requirements...


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 http://www.british-businessbank. co.uk/recovery-loan-scheme

The Recovery Loan Scheme (RLS) launched on 6 April 2021 and supports access to finance for UK businesses as they recover and grow following the Covid-19 pandemic.

RLS aims to help businesses affected by Covid-19 and can be used for business purposes, including, managing cashflow, investment and growth. It is designed to support businesses that can afford to take out additional finance for these purposes. All businesses may be eligible for the Recovery Loan Scheme, including businesses who have taken out a CBILS, CLBILS or BBLS facility are able to access the new scheme.

A key aim of the Recovery Loan Scheme is to improve the terms on offer to businesses, but if a lender can offer a business the choice of a commercial loan on better terms, without requiring the guarantee provided by the RLS, they should do so.
The Scheme will run until 31 December 2021, subject to review.

Scheme features include:

  • Up to £10m facility per business: The maximum amount of a facility provided under the scheme is £10m per business (maximum £30m per group). Minimum facility sizes vary, starting at £1,000 for asset and invoice finance, and £25,001 for term loans and overdrafts.
  • Term length: Term loans and asset finance facilities are available from three months, for up to six years, with overdrafts and invoice finance available from three months, for up to three years.
  • Interest and fees to be paid by the borrower from the outset: Businesses are required to meet the costs of interest payments and any fees associated with the RLS facility.
  • Access to multiple Covid-19 schemes: Businesses that have taken out a CBILS, CLBILS or BBLS facility are able to access the new scheme although the amount they have borrowed under a previous scheme may in certain circumstances limit the amount they may borrow under RLS.
  • Personal Guarantees: Personal guarantees are not permitted for facilities of £250,000 or less. Above £250,000 the maximum amount that can be covered under RLS is capped at a maximum of 20% of the outstanding balance of the RLS facility after the proceeds of business assets have been applied. No personal guarantees can be held over Principal Private Residences.
  • Guarantee to the Lender: The scheme provides the lender with a government-backed guarantee against the outstanding balance of the facility. The borrower always remains 100% liable for the debt.

Eligibility Criteria:

  • Covid-19 impact: The borrower must confirm to the lender that it has been impacted by Covid-19.
  • UK-based: The borrower must be carrying out trading activity in the UK.
  • Viability test: The lender will consider that the borrower has a viable business proposition but may disregard any concerns over its short-to-medium term business performance due to the uncertainty and impact of Covid-19.
  • Credit and fraud checks for all applicants: Lenders will be required to undertake credit and fraud checks for all applicants. The checks and approach may vary between lenders.
  • Turnover limit: There is no turnover restriction for businesses accessing the scheme.

Please note: The following are not eligible under RLS:

  • Banks, Building Societies, Insurers and Reinsurers (excluding Insurance Brokers)
  • Public sector bodies.
  • State funded primary and secondary schools.
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Are you looking for finance?

We are authorised and regulated by the Financial Conduct Authority and members of the NACFB, we work with commercial organisations of all shapes and sizes.

The credit facilities we can arrange comprise unsecured business loans, asset finance, invoice finance, VAT and tax finance, personal loans and vehicle finance.

At PFC, we match the many types of different credit facilities to your company’s requirement. Whether you need to support growth, ease sales ledger pressure, finance equipment or cover VAT and tax bills, we can support your route to better finances.

Our business finance products include:

  • Asset finance
  • Unsecured working capital or cashflow loans
  • Refinance of existing assets
  • Invoice finance
  • Inventory finance and stock finance
  • Tax & VAT bill finance