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What is the Recovery Loan Scheme?

Business Finance

What is the Recovery Loan Scheme?

Updated: 15 August 2023

We’re now offering the updated version of the Government-backed Recovery Loan Scheme (RLS). Here, we take a look at its features and eligibility criteria to help you decide whether it’s right for your business.

What is the Recovery Loan Scheme?

The Government’s Recovery Loan Scheme (RLS) is designed to help UK businesses access the finance they need to invest and grow during challenging times. The loan can be used for almost any business purpose, such as managing cash flow, investment and growth. Under the scheme, the Government provides a 70% guarantee to the provider, however it is important to note that the business remains liable for the full loan amount.

Providers can offer up to £2 million across facilities such as term loans, overdrafts, invoice finance and asset finance. 

What are the features of a Funding Circle Recovery loan?

As an accredited provider, we’re able to offer our fast application process under RLS. Some of the key benefits include:

  • Loans between £25,001 and £250,000
  • Decisions in as little as 1 hour
  • Terms from 2 to 6 years
  • No early settlement fees

It’s important to note that if you’re approved for a Recovery loan, you will be liable to pay the interest and fees from the outset. 

Am I eligible for a Recovery loan?

To be eligible to apply for a loan with us, you need to:

  • Have a minimum of 2 years’ trading history 
  • Be a limited company or limited liability partnership (LLP) 
  • Be trading in the UK

To receive a loan through RLS, you’ll also need to meet the scheme’s criteria:

  • Have a turnover of up to £45 million (on a group basis, where part of a group) 
  • Loan is for business purposes (ie. working capital or investment, and to support trading in the UK)
  • You are not a business in difficulty, including not being in relevant insolvency proceedings 

Can I get a Recovery loan if I’ve already got a CBILS or BBLS loan?

Yes you can get a Recovery loan if you have a Government scheme loan already, and there is no requirement to refinance any existing Government debt such as a Bounce Back loan.

Do I need a personal guarantee?

We ask for a personal guarantee on all loans, including those taken under RLS. However, Principal Private Residences cannot be taken as security under RLS.

Why is subsidy control relevant in the Recovery Loan Scheme?

Any Funding Circle loan offered to you under RLS is a type of Government subsidy because it is supported by the UK Government, and it gives advantage to your business. While you remain 100% liable to repay the loan in full, the RLS is supported by Guarantee to the lender. 

The maximum amount of subsidy your business can receive will be subject to an applicable threshold. You can find more information on the British Business Bank’s website

How do I get a Recovery loan?

All you have to do is fill in one 10-minute application on our website, and we’ll assess the right product for you on the best possible terms

Please note, a key aim of the Recovery Loan Scheme is to improve the terms on offer to businesses. If we can offer you a Funding Circle business loan for the same amount on similar or better terms, without requiring the guarantee provided by the scheme, we will do so.

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

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