Recovery Loans

Government Backed Funding for SME's

On 6th April 2021, British Business Bank announced that both CBILS and the Bounce Back Loan schemes have been replaced by the Recovery Loan Scheme, a government backed loan scheme designed to help and support UK businesses from the ongoing disruption of the COVID 19 pandemic.

Although the extended scheme ended on 30th June 2022, on 20th July 2022,  Department for Business, Energy & Industrial Strategy and The Rt Hon Kwasi Kwarteng MP announced the it will be extended by a further two years.  On 6th March 2024, it was announced that when the scheme ends on 30th June 2024, it will be replaced by the new Growth Guarantee Scheme, beginning on 1st July 2024.

Terms remain largely the same. Lenders will be permitted to ask for director’s guarantees for any facilities they offer.

  • The scheme will only be open to small and medium sized enterprises
  • The maximum amount of finance available will be £2 million per business
  • The guarantee coverage that the government will provide to lenders will be reduced to 70%


What are the current benefits?

  • The government has agreed to guarantee 70% of advances to accredited lenders
  • Term loans and overdrafts will be available between £25,001 and £2million per business
  • Invoice finance and asset finance will be available between £1,000 and £2million per business
  • Up to six year terms for asset finance and and term loans
  • Up to three year terms for invoice finance
    No minimum turnover
  • No minimum trading history
  • You can still apply even if you already have CBILS or Bounce Back Loans


Existing CIBILS, CLBILS or Bounce Back Loans?

  • No problem. Your business can still apply for the Recovery Loan Scheme (RLS) even if you have any of the previously Government backed scheme facilities in place. The maximum you are able to borrow will be determined by the lender’s criteria and eligibility of the scheme


How does the Government Guarantee work?

  • The Government offers an 70% guarantee to participating lenders in the scheme.
  • This guarantee gives participating lenders a greater confidence to lend to businesses previously affected by the fallout of the Covid-19 pandemic.
  • Lenders may now require a personal guarantee from the borrower, in line with standard commercial practice.
  • It is important to note, however, that as the borrower, you are still 100% liable for the debt


What are the finance options available?

  • Asset Finance
  • Business Loans
  • Invoice Finance


Your business is eligible if:

  • you are a trading business in the UK
  • It is not involved in any collective Insolvency Proceedings
  • you can demonstrate viability for your proposal, were it not for COVID-19
  • not involved in any collective insolvency proceedings
  • lenders may offer funding on standard commercial terms without using the scheme


How much interest will I pay?

  • Interest rates have been capped at 15%. The rate of your RLS will be determined by the lender and your business circumstances
  • Unlike the previous schemes, the British Business Bank will no longer pay your fees and interest on the facility for the first 12 months. These will be incurred from day one


What can I use the funds for?

  • Cashflow injection to grow or expand your business
  • Buying assets for the business
  • To consolidate and pay existing agreements
  • Manage one off costs


How do I apply?

If you would like to discuss how Liquid Corporate Finance can help fund a Recovery Loan for your business, contact us via the details below:

0333 772 1782

Contact Us

Our Sectors

Looking for refreshingly simple finance?
Call us today on 0333 772 1782 or email

Contact Us