The Recovery Loan Scheme

The Recovery Loan Scheme

As an accredited lender of the British Business Bank's Recovery Loan Scheme (RLS), we are here to support small UK businesses who are looking for financial support above £30,000 through our franchise finance team and our accredited introducer network.

If you are eligible for the Recovery Loan Scheme, please contact your finance introducer and they will be able to assist you. Alternatively, franchisees may fill in our contact form below to see how a member of our team can help.

For more information on the Recovery Loan Scheme, visit the British Business Bank’s dedicated web page.

Check your eligibility


What is the new 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. 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 (some features not available through Hitachi Capital Business Finance):

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

Is your business eligible? 

We are trying to help as many businesses as possible get the funding they require. We'll be able to assess your application for the British Business Bank's Recovery Loan Scheme if you match the minimum eligibility criteria below.

To be eligible for the British Business Bank's Recovery Loan Scheme, you should meet the eligibility criteria below:

      • Covid-19 impact: the borrower must confirm to the lender that it has been impacted by Covid-19
      • Be 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

To meet our Hitachi Capital Business Finance underwriting criteria, businesses need to:

      • Be UK based but not based in Northern Ireland
      • Have been trading for a minimum of three years (new start franchisees directly through our franchise finance team)
      • Generate at least 50% of its turnover from trading, or commercial activity
      • Provide last three bank statements and the latest accounting information including management accounts (or personal statements for new start franchises)

Please note, the following sectors are not eligible under RLS:
Banks, Building Societies, Insurers and Reinsurers (excluding Insurance Brokers), Public sector bodies and State funded primary and secondary schools.


Business Finance Support

The British Business Bank has a range of guidance and resources available to all businesses, including content on managing your cashflow and a list of independent advice services.

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-business-bank.co.uk/recovery-loan-scheme


  • Need to get in touch?

    We are offering the Recovery Loan Scheme through our franchise finance team and network of accredited finance introducers. If you have a query about the Recovery Loan Scheme, please contact your finance introducer directly or call our franchise finance team on 01844 355575 and they will be able to assist you.

    Alternatively, please complete the contact form and a member of the team will be in touch.

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