Funding and Banks…

Update to Government Recovery Loan Scheme:

The following changes will apply to all offers made from 1 January 2022.

Launched on 6 April 2021, the Recovery Loan Scheme (RLS) provides financial support to businesses across the UK as they recover and grow following the coronavirus pandemic.

You can apply to the scheme if Covid-19 has affected your business. You can use the finance for any legitimate business purpose – including managing cashflow, investment and growth. However, you must be able to afford to take out additional debt finance for these purposes.

If your business has already borrowed from any of the other coronavirus loan schemes – namely:

  • the Bounce Back Loan Scheme (BBLS)

  • the Coronavirus Business Interruption Loan Scheme (CBILS)

  • the Coronavirus Large Business Interruption Loan Scheme (CLBILS)

RLS is still open to you, although the amount you have borrowed under an existing scheme may in certain circumstances limit the amount you may borrow under RLS.

At Autumn Budget 2021, the government announced that the Recovery Loan Scheme will be extended by six months to 30 June 2022.

From 1 January 2022 the following changes will apply to all offers made :

  • The scheme will only be open to small and medium sized enterprises (turnover <£45m)

  • The maximum amount of finance available will be £2 million per business (maximum amount per Group limited to £6m)

  • The guarantee coverage that the government will provide to lenders will be reduced to 70%

Different lenders will have different lead times for processing applications, and it may not be the case that applications made before 31 December will be subject to the current terms. Applicants should check with their preferred lender.

(text from British Business Bank)



Applying for the Recovery Loan Scheme...

We now understand what lenders may require from businesses applying for the Recovery Loan Scheme.

(text below from the British Business Bank)...

What a lender will need from you...

When you apply for finance from RLS, you’ll need to provide certain evidence to show that you can afford to repay the RLS-backed facility. This is likely to include the following:

  • Management accounts

  • Business plan

  • Historic accounts

  • Details of assets

Decision-making on whether a business is eligible for RLS is fully delegated to the British Business Bank’s accredited RLS lenders.


The scheme for CBILS & CLBILS officially ended as of 31st MARCH 2021.

The introduction of CBILS / CLBILS saw banks acting as a “gateway” to government funding, but as businesses head into the “new normal” the need for robust realistic forecasts will become key.  Businesses need to be realistic about lenders appetite to fund in particular situations.