What is the Recovery Loan Scheme (RLS)?

The Recovery Loan Scheme is set to replace the existing coronavirus finance support schemes (the Coronavirus Business Interruption Loan Scheme (CBILS), Coronavirus Large Business Interruption Loan Scheme (CLBILS) and Bounce Back Loan Scheme (BBLS)). The scheme will run from 6 April 2021 until 31 December 2021, subject to review. The existing CBILS closes for applications at the end of March 2021 and so this will be seen as a welcomed replacement for many businesses which have struggled as a result of the pandemic.

How the Recovery Loan Scheme differs

The maximum value of a facility provided will be £10 million per business and once received, the finance can be used for any legitimate business purpose, including growth and investment. The government guarantees 80% of the finance to the lender.

The main difference with the RLS to the existing COVID-19 schemes is that t