Recovery Loan Scheme:
Replacing CBILS & Bounceback

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  • Fixed rates from 6.59% AFR*
  • Borrow £10,000 to £2,000,000
  • Government-backed funding
  • Designed for small businesses
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427 reviews on 4.8 stars
 
Recovery Loan Scheme Available Until 2024

What is the Recovery Loan Scheme?
Government-backed finance for small businesses

The Recovery Loan Scheme (RLS) is a government-backed loan for small businesses at fixed and capped rates intended to provide limited companies with easier access to finance if you are looking for a cashflow boost or to buy new equipment. Rates are competitive with the added benefit that your Principal Private Residence cannot be taken as security. Portman acts as a broker for the Recovery Scheme, working with multiple lenders to give our customers more options.

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Key features of Recovery Loans

  • Finance available through Portman is from £10,000 to £2,000,000
  • Available to UK businesses with a turnover up to £45m
  • Principal Private Residences cannot be taken as security
  • 70% of outstanding loan guaranteed by the goverment
  • Competitive fixed interest rates
  • Funds for any legitimate business use
  • No Covid impact assessment required
  • Previous applicants or recipients of CBILS or Bounceback can apply
  • Up to 6 year terms – giving affordable monthly payments
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What are the rates? *

*  As with all business loans, the rates for Recovery Loans vary based on your own circumstances.

  • Annual flat rates for RLS equipment finance start at 6.9%.
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Am I eligible for the Recovery Loan Scheme?

The scheme is open to:

  • All businesses trading in the UK with a turnover up to £45m not currently in insolvency proceedings.
  • Including those that have previously taken Government-backed facilities (eg. RLS, CBILS, Bounce Back Loan).
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Why should I talk to Portman about RLS?

Portman Finance Group are one of the largest hybrid broker-lenders. Each year we talk to around 20,000 businesses about their finance needs. At Portman we:

  • Are rated Excellent on Trustpilot.
  • Make decisions with real people not algorithms.
  • Can search the market to find the right options for you.
  • Can build tailored packages from multiple lenders to get what you need.
  • Give you a dedicated account manager to guide you through the process.
  • Can get approvals and have funds released in hours not days.
  • Act as a broker with multiple options to find the right deal for your business.
  • Fund most asset types and most businesses and we will look to help even if you don’t have a strong credit history.
We make RLS Easy

How do I get a Recovery Loan?

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1. Fill in the online enquiry form or call us.

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2. Have a chat to understand your business and goals

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3. We find the right deals, complete applications and get you a no obligation quote.

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4. If accepted funds are released into your account in as little as 24hrs.

Enquire today
Portman offers a breadth of business finance

Business Loans, Flexible Loans and Short Term Loans are also funding options

The Recovery Loan Scheme is administered by the British Business Bank on behalf of the Secretary of State for Business and Trade

The Recovery Loan Scheme aims to improve the terms on offer to borrowers. If a lender can offer a commercial loan on better terms, they will do so. Portman acts as a broker for RLS, giving our customers multiple options.

Key features of the scheme as detailed by the British Business Bank:

  • Up to £2 million per business group: The maximum amount of a facility provided under the scheme is £2 million per business group for borrowers outside the scope of the Northern Ireland Protocol, and up to £1 million per business group for Northern Ireland Protocol borrowers. Minimum facility sizes vary, starting at £1,000 for asset and invoice finance, and £25,001 for term loans and overdrafts;
  • Wide range of products: RLS supports term loans, overdrafts, asset finance and invoice finance facilities. Not all lenders will be able to offer all products;
  • Term length: Term loans and asset finance facilities are available from three months up to six years, with overdrafts and invoice finance available from three months up to three years;
  • Access to multiple schemes: Businesses that took out a Coronavirus Business Interruption Loan Scheme (CBILS), Coronavirus Large Business Interruption Loan Scheme (CLBILS), Bounce Back Loan Scheme (BBLS) or RLS facility before 30 June 2022 are not prevented from accessing RLS, but in some instances borrowing under these schemes may reduce the maximum amount the borrower is eligible for;
  • Pricing: Interest rates and fees charged by lenders will vary and will depend on the specific lending proposal. The lender’s pricing will take into account the benefit of the Government guarantee;
  • Personal Guarantees: Personal guarantees can be taken at the lender’s discretion, in line with their normal commercial lending practices. Principal Private Residences cannot be taken as security within the Scheme;
  • Guarantee is to the lender: The scheme provides the lender with a 70% government-backed guarantee against the outstanding balance of the facility after it has completed its normal recovery process. The borrower always remains 100% liable for the debt;
  • Decision-making delegated to the lender: RLS-backed facilities are provided at the discretion of the lender. Lenders are required to undertake their standard credit and fraud checks for all applicants.

Eligibility criteria as detailed by the British Business Bank

  • Turnover limit: The scheme is open to smaller businesses with a turnover of up to £45m (on a group basis, where part of a group);
  • UK-based: The borrower must be carrying out trading activity in the UK and, for most businesses, generating more than 50% of its income from trading activity;
  • Viability test: The lender must consider that the borrower has a viable business proposition but may disregard (at its discretion) any concerns over its short-to-medium term business performance due to the uncertainty and impact of Covid-19;
  • Business in difficulty: The borrower must not be a business in difficulty, including not being in relevant insolvency proceedings;
  • Subsidy limits: Borrowers will need to provide written confirmation that receipt of the RLS facility will not mean that the business exceeds the maximum amount of subsidy they are allowed to receive. All borrowers in receipt of a subsidy from a publicly funded programme should be provided with a written statement, confirming the level and type of aid received.

Recovery Loans FAQs

Government-backed scheme to help businesses recover from Covid-19 restrictions. Phase 2 of the scheme launched on 1 September 2022

What can a Recovery Loan be used for?

Businesses can borrow between £10,000 and £2,000,000. Any investment plans that require funding can be accelerated using a finance product that protects an individual’s Principal Private Residence. Repayment periods are up to 6 years. The loan can be used for any legitimate business purpose including: equipment, vehicles, cashflow, stock, refurbishments, technology and marketing. 

I thought the Recovery Loan Scheme finished?

The Recovery Loan Scheme was launched on 6th April 2021 and Phase 1 was closed to further applications from midnight on 30th June 2022. However, the UK Government launched Phase 2 of the scheme on 1st September 2022 and initially plans to run the facility until 2024.

How does a Recovery Loan compare to other options?

The government backs 70% of a Recovery Loan which means they carry some of the risk should a business default on the loan. As a result, more businesses can access finance and rates can be more competitive. However the actual rate a business is offered can still vary based on individual credit history and trading circumstances. Traditional business loans offer an alternative and in some circumstances may be more suitable. Asset Finance: Hire Purchase or Lease Finance, typically carries a lower risk for the lender because the asset itself acts as security and can be reclaimed by a lender if the borrower defaults on the loan. Typically this means that rates can be lower, particularly for high value assets.

Your Portman Account Manager can discuss options with you, depending on your intended purchase, but ultimately the choice as to what’s right for your business is yours.

Can I pay my Recovery Loan off early?

You can pay your Recovery Loan off at any time. Your lender can provide you with a settlement fee, which you can then pay directly to them. That’s it.

Portman acts as an approved broker for Recovery Loans and not a lender, check your paperwork to find out who your lender is.

Can you have a CBILS and RLS

Yes. Having CBILS, CLBILS, and BBLs does not exclude you from the Recovery Loan Scheme. You can still access RLS, provided you meet the eligibility criteria.

How long does an RLS facility last?

An RLS facility lasts up to six years for loans and asset finance. Overdraft and invoice finance facilities last up to 3 years.

What is the difference between CBILS and a Recovery Loan?

The Coronavirus Business Interruption Loan Scheme (CBILS) was a loan scheme for amounts of £50,000 to £5 Million. To be eligible for the scheme required an annual turnover of £200,000. The scheme ended on 31 March 2021. The Recovery Loan Scheme, like the CBILS, offers 2-6 year terms. RLS is for amounts of £25,000 to £10 million. It also has a lower annual turnover requirement – £100,000. RLS is available until 2024.