The Recovery Loan Scheme: what it is and how to apply

As we move into the warmer months and things start to open up again, now is a key time for small businesses. Now is the start of an important transition period where we start to gear up for business post-Covid, with a focus on moving forward and recovering from the disruptions and drawbacks of the past year.

With Covid restrictions easing and the opportunity of scaling up operations post-Covid, now is the time for businesses to be focusing on their cash flow.

With this in mind, we're starting to see the CBILS and Bounce Back Loans being replaced by the government's Recovery Loan Scheme.

Here's the lowdown on the new Recovery Loan Scheme and what to consider before applying.

What is the Recovery Loan Scheme?

The Recovery Loan Scheme (RLS) is a new government loan that is replacing the Coronavirus Business Interruption Loan Scheme (CBILS) and Bounce Back Loan Scheme (BBLS) and it's designed to help businesses recover after the pandemic. Businesses can borrow up to £10 million either as term loans, overdrafts, invoice finance, or asset finance.

With similarities between the old and new schemes, we are seeing businesses begin to apply under the new scheme to help them flourish as the country exits a full year of Covid.

The new Recovery Loan Scheme is available until 31 December 2021, offering businesses vital access to capital throughout the rest of 2021 as we navigate this period of transition.

Should I apply?

If you’re looking to strengthen your balance sheet and raise additional finance, the Recovery Loan Scheme could be an ideal route to get extra funding for your business.

Here are some key benefits of a Recovery Loan:

  • A loan can play a vital part in helping you get your business back on track with future plans and funding your next big move.
  • A Recovery Loan can help to remove headaches around cash flow, providing peace of mind that you have a cash surplus to fall back on throughout the year if you need to.
  • It can help you take back control by offering stability and insurance whilst we navigate a time of uncertainty.

It could be worth applying for a loan if your business is considering the following:

  • investing in new equipment or assets
  • scaling up staff or premises
  • looking to plug an immediate cash flow gap
  • looking to improve your long-term capital position

Who can apply?

As long as your business is trading in the UK, you can apply for a Recovery Loan. You just need to show that your business:

  • would be viable if it wasn't for the pandemic
  • has been adversely impacted by the pandemic
  • is not in collective insolvency proceedings (unless your business is in scope of the Northern Ireland Protocol, in which case different eligibility rules may apply).

If your business has already received support through the CBILs or BBLS, you are still eligible to access the Recovery Loan Scheme, as long as you meet all of the other criteria.

How to apply for a Recovery Loan

If you're thinking of applying for a loan, we'd recommend talking to your accountant first.

A good accountant can help you submit an application that positions your business in the best possible light for funding. They can also help you find a lender that offers the type of finance your business is looking for.

We're here to help

Here at Complete, we're on a mission to support businesses and help them thrive post-Covid.

We believe funding can be a vital part of steering your business out of the pandemic and propelling you to your next level of success. When used wisely, funding can be a kickstarter to recovery, building stronger foundations for your business and helping you get to where you want to be.

Working with lending platform Capitalise, we can help with the loan application process and provide access to a wide-ranging network of banking and lending partners.

We're here to help with getting access to funding so you can get the foundations in place to build a better, stronger, and more resilient business post-pandemic.

Find out more or get in touch to chat with our finance team.


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