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Recovery Loan Scheme

With a Recovery Loan Scheme (RLS) loan from LendingCrowd, you can borrow from £25,001 to £500,000, with terms of up to 60 months and no early repayment fees.

Please note: the Recovery Loan Scheme closed to new applications on 30 June 2022. This page is for reference to enable borrowers to access information about the scheme. For information about LendingCrowd business loans, click below.

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 30 June 2022.

Scheme features include:

  • Up to £2m facility per business: The maximum amount of a facility provided under the scheme is £2m per business (maximum £6m per group). Minimum facility sizes vary, starting at £1,000 for asset and invoice finance, and £25,001 for term loans and overdrafts. (The maximum RLS term loan available from LendingCrowd is £500,000.)

  • 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. (The maximum term for LendingCrowd’s RLS loans is five 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: The scheme is open to small and medium-sized enterprises with a turnover of less than £45 million.

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

Borrow from £25,001 to £500,000

Borrow from £25,001 to £500,000

Fast, efficient funding

Fast, efficient funding

Repay over 36, 48 or 60 months

Repay over 36, 48 or 60 months

LendingCrowd RLS loans

Is your business eligible?

  • Borrow from £25,001 to £500,000
  • Based in the UK
  • Rates from 9.45%
  • 50% of income from trading activity in the UK
  • Term: 36, 48 or 60 months
  • Impacted by Covid-19
  • No early repayment fees
  • Viable if it wasn’t for the pandemic
  • We will need further information to confirm eligibility. Your application will not be deemed to have been submitted until you have provided all the required information and documentation. Please note: when taking out an RLS loan, the borrower remains fully liable for the debt.

    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 and 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 www.british-business-bank.co.uk/recovery-loan-scheme

    British 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.

    Learn more about RLS loans

    LendingCrowd is working with the Government-owned British Business Bank to help deliver the Recovery Loan Scheme.

    Want to know more?

    Frequently asked questions

    • RLS aims to help businesses of any size across the UK affected by Covid-19, providing support for businesses to recover and grow following the disruption of the pandemic. It is designed to appeal to businesses that can afford to take out additional debt finance and can be used for any legitimate business purpose, including managing cashflow, investment and growth.

    • RLS guarantees a wide range of products, covering term loans, overdrafts, asset finance and invoice finance facilities. Businesses can borrow up to a maximum of £2 million, available on repayment terms up to six years (for term loans and asset finance) and up to three years (for overdrafts and invoice finance facilities).

      Minimum facility sizes vary, starting at £1,000 for asset and invoice finance, and £25,001 for term loans and overdrafts.

      Businesses will be required to meet the costs of interest payments and any fees associated with the facility from the outset.

      Lenders will be required to undertake standard credit, fraud, Anti-Money Laundering (AML) and Know Your Customer (KYC) checks for all applicants. When making their assessment, lenders may overlook concerns over short- to medium-term performance owing to the pandemic. The checks and approach may vary between lenders.

      The scheme provides the lender with a government-backed 70% guarantee against the outstanding balance of the facility. The business remains 100% liable for repayment of the facility.

      A key aim of the Recovery Loan Scheme is to improve the terms on offer to businesses, but if we can offer a LendingCrowd loan on better terms, without requiring the guarantee provided by the RLS, we will do so.

    • With LendingCrowd, you can borrow between £25,001 and £500,000 using RLS. Loan terms are either 36, 48 or 60 months.

    • To complete your RLS application, you’ll need to answer our eligibility questionnaire and supply:
      • Two years’ filed accounts

      • Three months’ bank statements

      • Details of current borrowing

      • Management information (if available)

    • No personal guarantee is required for RLS loans up to £250,000. For RLS loans from £250,001 to £500,000, personal guarantees will be required for 20% of the outstanding balance of the RLS facility after the proceeds of the business assets have been applied. No personal guarantees can be held over principal private residences. When taking out an RLS loan, the borrower remains fully liable for the debt.

    Any questions? Get in touch

    Visit our help centre or give us a call and we’ll be happy to help.

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    0345 564 1600

    You can call us Monday to Friday from 9am to 5:30pm.

    LendingCrowd is the trading name of Edinburgh Alternative Finance Limited, Company Number SC468392, authorised and regulated by the Financial Conduct Authority (Firm reference number 670991). LendingCrowd and its products are not covered by the Financial Services Compensation Scheme.

    The company's registered office is 23 Manor Place, Edinburgh, EH3 7DX.

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