Recovery Loan Scheme

A new debt finance programme, the Recovery Loan Scheme (RLS), was announced by the Government in the Budget on 3 March 2021. The new Scheme, which will open on 6 April 2021, aims to support businesses affected by Covid-19 as they recover and grow following the pandemic. RLS supports a maximum facility size of up to £10m with minimum facility sizes starting at £1,000 for Invoice and Asset Finance and £25,001 for Term Loans and Overdrafts. Further information can be found on the British Business Bank website.

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Key features

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    Loans up to £50,000

    Loans from £2,000 up to 25% of business turnover. The maximum loan amount is £50,000.

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    Terms available

    The length of the loan is six years but early repayment is allowed, without early repayment fees.  You will not have to repay any of the loan for the first 12 months.

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    Interest & Fees

    • The UK Government will pay us, on your behalf, the interest for the first 12 months of the loan as a ‘Business Interruption Payment’ so you don’t have to.
    • Thereafter interest will be payable at a fixed rate of 2.5% per annum.
    • We will not charge an arrangement fee.

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    • The Government provides us, as your lender, with a guarantee of 100% to secure the outstanding balance on the facility (both capital and interest).
    • No other security will be required.


    Please note: Your business remains liable for repaying 100% of the debt.

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Eligibility criteria

Your business is based and operates in the UK and you must be able to self‑certify to us as your lender that it:


  • Was established in the UK by 1 March 2020

  • Generates more than 50% of its income from trading or commercial activity in the UK (this requirement does not apply to charities or further-education colleges)

  • Has been adversely impacted by the coronavirus (COVID-19) pandemic

  • As at 31 December 2019, was not experiencing financial difficulty (if it was, you must confirm your business complies with additional state aid restrictions under de minimis state aid rules)

  • Is not already using a Government-backed Coronavirus Loan scheme, unless the Bounce Back Loan Scheme will refinance your existing Government-backed Coronavirus Business Interruption Loan Scheme.

Businesses not eligible:

  • Banks, insurers and reinsurers (but not insurance brokers)

  • Public-sector organisations

  • State-funded primary and secondary schools

  • Businesses in bankruptcy or liquidation or undergoing debt restructuring at the time applications for finance are submitted.


Full details on Bounce Back Loan Scheme eligibility criteria and the list of participating Bounce Back Loan Scheme lenders can be found on the British Business Bank website.

Important information

The UK Government has determined that loans made under the Bounce Back Loan Scheme:


  • will not have the usual consumer protections and remedies that would otherwise be available to you under the Consumer Credit Act 1974, other than in a default debt collection situation;
  • we will not conduct a credit worthiness or affordability check when you apply, and have no responsibility for your decision to borrow;


  • applications from eligible borrowers will be subject to fraud, Anti-Money Laundering and Know Your Customer Checks.


We recommend you seek independent legal advice if you are in any doubt about the Bounce Bank Loan Scheme not being regulated by the Financial Services and Markets Act 2000 or the Consumer Credit Act 1974.

If you fail to make any repayments on a Bounce Back Loan, we will be entitled to take action against you to recover the full amount of the Loan. Missing repayments could result in legal proceedings, and have a negative impact on your credit rating which may make it more difficult for you to obtain credit in the future.

Whether we provide credit depends on your circumstances, and you must be 18 or over. Lending criteria, terms and conditions apply.

You recognise that by providing inaccurate or incomplete information in your application that you will be regarded as attempting to gain, or gaining, a financial advantage dishonestly and as such will be liable to criminal prosecution for fraud under the Fraud Act 2006.



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Managed by the British Business Bank on behalf of, and with the financial backing of, the Secretary of State for Business, Energy & Industrial Strategy. British Business Bank plc is a development bank wholly owned by HM Government. It is not authorised or regulated by the PRA or the FCA. Visit

Further information

For loans provided under the Bounce Back Loan Scheme we have agreed that we will:


  1. monitor your repayment record during the life of the scheme facility and take appropriate action where there are signs of actual or possible repayment difficulties;

  2. make appropriate adjustments where we identify you as vulnerable or have reason to believe that you may be vulnerable, to ensure your circumstances are accommodated throughout the duration of the Bounce Back Loan;

  3.  on default by you, give you a reasonable period to remedy any breach and will not treat the same as an event of default if it is remedied by you within this period;

  4. not require you to pay any fees of any description (including on default) or any default interest (except that we may continue to charge interest at 2.5% per annum if the scheme facility is not repaid when due until such time as it is repaid).

  5. pay due regard to your information needs and provide information to you in a way which is clear, fair and not misleading.

  6. If you decide to switch your current account to another Bank you won’t have to close your loan but you will continue to be liable for any repayments to clear it per your contract.


As your Lender we will provide you with the following minimum information during the term of your Bounce Back Loan:


  1.  Timely, clear and adequate information to enable you to understand what happens if you fail to make payments under the Bounce Back Loan, the amount of payments you missed and what can be done to remedy this, along with timescale and impact on future payments;

  2. If you default on your Bounce Back Loan, we will advise you of the proposed action we will take prior to taking this action;

  3.  Regular information on your Bounce Back Loan (at least on an annual basis) in the form of a statement which will set out details of your Bounce Bank Loan payment transactions and the amount outstanding;

  4. Information on options available to you for help and assistance, including sources of free independent advice.



Complaints about our service

We want to listen to you, our customer.  By putting you first, we aim to improve your experience of our service.


When you tell us that you are not happy with us, we will welcome your comments and complaints.  That’s because whatever you tell us gives us an opportunity to make a difference.


If you have reason to complain you may do so in person, in writing by post or email or by telephone. Details of our complaints handling procedures are available on request from your business centre, by contacting us on 0345 6005 204 or at  


If we are unable to resolve your complaint internally to your satisfaction, or if we have not resolved your complaint within 8 weeks from when you first let us know about your concerns and if you are an eligible complainant, you may be able to refer your complaint to The Financial Ombudsman Service, Exchange Tower, London E14 9SR (


The Financial Ombudsman Service is an organisation set up by law to give consumers a free and independent service for resolving disputes with financial firms. Details of those who are eligible complainants can be obtained from the Financial Ombudsman Service.



Other business finance support options

In addition, the British Business Bank has a range of guidance and resources available to all businesses, including content on managing your cashflow and a list of independent advice services.