RLS Scheme 2023

Recovery Loan Scheme 2023

Recovery Loan Scheme 2023

RLS Scheme 2023. The COVID-19 pandemic has affected millions of businesses worldwide, leaving many struggling to stay afloat. In response, the UK government introduced the Recovery Loan Scheme (RLS), which aims to help businesses recover from the economic impact of the pandemic.

In this blog, we’ll take a closer look at the Recovery Loan Scheme and how it can benefit your business.

What is the Recovery Loan Scheme?

The Recovery Loan Scheme is a government-backed loan scheme that provides financial support to businesses that have been affected by the COVID-19 pandemic. RLS scheme 23 is designed to help businesses access funding to help them recover and grow.

The scheme was launched on 6 April 2021, and it was extended again in August 22. RLS scheme replaced the previous Coronavirus Business Interruption Loan Scheme (CBILS), which ended on 31 March 2021.

How does the Recovery Loan Scheme work?

The Recovery Loan Scheme provides loans of between £25,001 and £2mil per business group. The loans can be used for a range of purposes, including:

  • Managing cash flow
  • Investment in new technology and equipment
  • Repaying existing debt
  • Business growth and development

The loans can be used for a period of up to six years, and businesses will have to pay interest on the loans from the outset. The interest rates for the loans will vary depending on the lender, but they are expected to be at market rates.

Who is eligible for the RLS Scheme 2023?

To be eligible for the Recovery Loan Scheme, businesses must meet the following criteria:

  • Must be UK-based
  • They must have been affected by the COVID-19 pandemic
  • They must be able to afford the repayments of the loan

The scheme is open to all businesses, including those that have already received support under previous COVID-19 loan schemes, such as CBILS and the Bounce Back Loan Scheme (BBLS).

How to apply for the RLS Scheme 2023

To apply for the Recovery Loan Scheme, businesses should approach one of the accredited lenders. As a FCA Register broker we are able to assist any business with their application.

Businesses will need to provide the lender with certain information to support their application, including:

  • Evidence of how their business has been affected by the pandemic
  • Details of the purpose of the loan
  • A business plan, including financial forecasts
  • Details of any existing loans or other forms of finance

It is important to note that the Recovery Loan Scheme is not a grant, and businesses will be expected to repay the loan in full, with interest.

Recovery Loan Scheme FAQs – Phase Three (From August 22)

What is Maximum facility value?

£2m per business group for borrowers outside the scope of the Northern Ireland Protocol,
or up to £1m for business groups in scope of the Northern Ireland Protocol. Businesses in some sectors in scope of the Northern Ireland Protocol will have lower limits..

What is the maximum borrower size?

Businesses with turnover up to £45m

Are there any Personal Guarantees?

Personal guarantees allowed for facilities of all sizes, in line with a lender’s usual practices.
Family home cannot be taken as collateral.

Covid-19 impact?

Most businesses do not have to declare a Covid-19 impact.
Some Charities and Further Education colleges are required to declare they have been impacted by Covid-19 (until 31 December 2021).

Business viability?

Business has a viable business proposition – but the lender may disregard concerns over short-to-medium term business performance due to the impact of Covid-19.
Borrower cannot be in insolvency proceedings.

What is the Government guarantee to the lender?

The guarantee has reduced through the years from 80% to its current position of 70%


The Recovery Loan Scheme is an important lifeline for businesses that have been affected by the COVID-19 pandemic. It provides access to funding that can help businesses recover and grow, allowing them to invest in new technology, manage cash flow, and pay off existing debts.

If you think your business could benefit from the Recovery Loan Scheme, get in touch to discuss your options. With the right support and funding, your business can emerge stronger from the pandemic and continue to thrive in the future.

    RLS Scheme 2023



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