By Laura Day 28/04/2021

From 6th April 2021, the UK Government launched its new programme to support UK SME and business lending, the Recovery Loan Scheme (RLS). This scheme replaces CBILS and other lending support in place at the height of the pandemic. Interest rates and fees may vary between lenders, plus lending decisions will be driven by an individual funder’s own credit policies, but here is a snapshot:

  • Through the scheme, lenders can provide up to £10 million per business in the form of a term loan, overdraft, invoice finance, or asset finance.
  • Businesses of any size, income or trading history can be considered for a loan.
  • Once a Recovery Loan has been released, the borrower is responsible for covering the fees upfront, and for paying the interest and loan repayments straight away.
  • The government will offer an 80% guarantee to the lender.
  • No personal guarantees will be taken on facilities of up to £250,000, and a borrower’s principal private residence cannot be taken as security.
  • A company can still apply for a Recovery Loan if its already received financial support under previous Government coronavirus schemes, providing it meets eligibility criteria and affordability.
  • The scheme is now open for applications and will close on 31st December 2021, subject to review.

To qualify, your business must:

Businesses will not qualify if:

Be trading in the UK. They’re involved in collective insolvency proceedings.
Be considered viable, or would be viable were it not for the pandemic. They’re a bank, building society, insurance company (except insurance brokers), public-sector body, or state-funded school.
Have been directly impacted by the pandemic.

To discuss Asset Finance purchases or the Recovery Loan Scheme then just give me a call!

We are Primary Asset Finance and we focus on funding SME’s.

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For full information on both schemes please visit and the British Business Bank website.

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