Recovery Loan Scheme (RLS) Criteria Set to Change

Larger businesses seeking loans of more than £2million via the Recovery Loan Scheme (RLS) must take action before the new year, or risk missing out.

 From 1st January 2022 the RLS will only be open to small and medium sized businesses with a turnover of less than £45 million, while the maximum loan amount available on the scheme will be £2 million, rather than the previous limit of £10 million. 

In the autumn 2021 budget, it was announced that the scheme had been extended by six months and is now due to end on 30th June 2022. However the changes in criteria mean that some businesses risk missing out.

Bathgate Business Finance successfully brokered £31million in CBILS loans for businesses across the North West and was recently awarded ‘highly commended’ in the CBILS Broker of the Year category at the NACFB Commercial Broker Awards.

 Since that scheme closed it has focused its team’s expertise on helping businesses get the most out of the RLS scheme having written £3.75m to date, with another £2m in its pipeline.

Speaking of the upcoming changes to the scheme, Bathgate Business Finance MD, Gordon Andrews, said: “There is no doubt that the changes to the RLS will make it more difficult for larger businesses to access government-backed finance in the new year.

“However, our team has full access to the British Business Bank’s accredited independent funders, we have a simple application process and we frequently secure quick decisions and pay-outs, so there is time before the new criteria comes into play.

“Currently, the RLS offers so many benefits – up to £250k supported by government guarantee, meaning no personal guarantee or company debenture is needed. Selected funders offer interest-only loans for up to 12 months and it is also possible to secure up to 6 years funding.

“The opportunity is still there, but time is running out. It is essential that interested businesses act now, as the announced changes will apply to all offers made from 1st January 2022.” 

Read more about the RLS here >>>

For more information on the Recovery Loan Scheme (RLS), contact or call 0151 625 7323.