Angus Brewer Senior Consultant

The Recovery Loan Scheme (RLS) was first announced in March 2021, it was created to help organisations through the COVID-19 pandemic.

To take advantage of this scheme you needed to prove that your business had been negatively affected by COVID-19. However, the RLS was updated and extended in August 2022 – so, let’s see what’s changed:

What has changed since the RLS got updated in August 2022?The main difference is that now there are not any requirements for a business to verify that it’s been adversely suffering from Covid-19.

Who can it support, are you eligible?The recovery loan supports access to finance for small and medium sized UK businesses. Your business may be eligible for a loan if – 

  • It's trading within the UK
  • It has a turnover of £45 million or less 
  • It's viable and isn’t in any difficulty
  • Can prove it will not exceed the maximum amount of subsidy it’s allowed to receive by accepting a Recovery Loan (

What are you able to borrow?

  • Term loans or overdrafts of between £25,001 and £2 million per business group
  • Term loans or overdrafts of between £25,001 and £1 million for businesses in scope of the Northern Ireland Protocol
  • Invoice or asset finance of between £1,000 and £2 million per business group
  • Invoice or asset finance of between £1,000 and £1 million for businesses in scope of the Northern Ireland Protocol

Do you get credit checked for RLS?Yes – all applicants for government recovery loans are credit-checked by lenders. Lenders also must carry out fraud checks.

Is the RLS the same as the Bounce Back Loan? And how long will RLS last?The RLS stepped in to replace both the Bounce Back Loan Scheme and also the Coronavirus Business Interruption Loan Scheme, both of which are now closed. The new variation of the RLS will last an additional two years, until 2024.

What is the RLS interest rate?Although the government guarantees 70% of the finance to the lender, businesses are 100% liable for the borrowed debt and are responsible for paying interest rates and lender fees that may arise during the process. From lender to lender, interest rates and fees for the RLS vary. Therefore, before completing any applications, you must carefully compare. However, the annual effective rate of interest, combined with other fees and charges, cannot exceed 14.99%.

Useful Links:

If you think this could apply to you, or if you are at all unsure, you should get competent professional advice, contact us at or call 02476673160 to find out more.

Please note: This article is provided for information only and was correct as of the time of writing (13/09/22). Any lists and details provided above are not exhaustive and are not intended to be full and complete guidance.  No action should be taken without consulting detailed legislation or seeking independent professional advice. Therefore no responsibility for loss occasioned by any person acting or refraining from action as a result of the material contained in this article can be accepted.