Seeing double: New recovery loan scheme begins

10th August 2022

While one government-backed Recovery Loan Scheme (RLS) ends, another opens.


The previous RLS closed on 30th June 2022, but to follow this the government have introduced a new RLS scheme to support businesses through the out-turn of the pandemic, expected to be accessible after 1st August 2022.


The New Recovery Loan Scheme

  • Government backed finance, lender obtains 70% guarantee by the government
  • Covers term loans, overdrafts, asset finance and invoice finance
  • Up to £2m per group (limited to £1m for borrowers in scope of the NI protocol)
  • Terms between 3 months to 6 years
  • Personal guarantees at the lenders’ discretion (excl principle private residences)
  • Can be used for any legitimate business purpose including cashflow, investment and growth


It is also positive to hear that businesses that took out a CBILS, BBLS or BLS facility before 30th June 2022 may still be eligible for the new RLS scheme, but the amount available may be capped.



  • Turnover up to £45m (where part of a group, this also applies to total turnover for the group)
  • UK based, undertaking trading activity in the UK and > 50% income is from the trading activity
  • The business does not have to have been affected by Covid-19 (but will be required if the entity is a charity or further education college)
  • The business must not be a business in difficulty
  • There will be a viability test as to whether there is a viable business proposition – at the lenders’ discretion
  • The subsidy limits apply
  • Lenders to initially sign up to this new scheme:
    • Bank of Scotland,
    • Coventry & Warwickshire Reinvestment Trust (CWRT),
    • Lloyds Bank,
    • NatWest,
    • Royal Bank of Scotland.

We can assist businesses with applications to the new RLS should this be something they are interested in. Alternatively we can also discuss other options including general business advice and future funding plans. Please contact your Whitings LLP representative or local office to discuss further.

Disclaimer - All information in this post was correct at time of writing.
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