How To Successfully Apply For A Recovery Loan Scheme

How To Apply For The Recovery Loan Scheme Successfully

Are you looking to learn how to apply for The Recovery Loan Scheme?


Keep reading because I’m going to teach you how to successfully apply for the Recovery Loan Scheme.


What is a Recovery Loan Scheme (RLS)? 


The Recovery Loan Scheme was launched to replace two previous schemes.


Coronavirus Business Interruption Loan Scheme (CBILS) and Bounce Back Loan Scheme (BBL)


Last year, we had two schemes that were supporting business owners all around the UK. The first was called the Coronavirus Business Interruption Loan Scheme (CBILS), which was for medium to larger businesses.


The other scheme was the Bounce Back Loan Scheme (BBL) this was for smaller businesses, it was guaranteed by the government to 100% which meant the money was lent super fast.


Both schemes, the CBILS and the BBL ended on the 31st of March 2021.


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Recovery Loan Scheme (RLS)


The Recovery Loan Scheme is designed to help businesses recover and grow after the disruption caused by pandemic. This new scheme is similar to the previous scheme but a few things are different.


The Recovery Loan Scheme ensures businesses of any size can continue to access loans and other kinds of finance up to £10 million per business once the existing COVID-19 loan schemes closed, providing support as businesses recover and grow following the disruption of the pandemic.



The previous BBL were 100% guaranteed by the government.  The Recovery Loan Scheme loans are guaranteed up to 80%.  This means the bank now has some risk as they are exposed to 20% of the loan.


Some very welcome news is that if you already took a Bounce Back Loan you can get a second Recovery Loan.  Bounce Back Loans were designed to keep businesses alive, The Recovery Loan Scheme is to help you recover.


Your business can be making a loss and you can still get a Recovery Loan.


How Do I apply for a Recovery Loan Scheme (RLS) successfully? 


What should I do first?


The first thing you need to do is get everything organised. The lending criteria is a little stricter and business owners need to make sure a few things are in place prior to making an application.


Make sure the following is in place. 


  •  Annual return.

Go to Companies House, and check that your annual return is up to date. When I applied for my bounce back loan, initially it didn’t go through. This was because my annual return was a few days late, just a few days. Sort this out with your accountant.


  • File your accounts.

If your annual accounts are due, you need them to be submitted to Companies House. It will make a big difference if you get your account up to date with Companies House.


NOTE: You don’t need to be profitable at the moment.  You just need to prove that you business is viable going forward.

What should I do to prove my business is viable going forward? 


  • Create a business plan 

You can do that with forecasts and a business plan. Tell the lender what you expect your turnover to be, until the end of this year, next year and the year after.


Share any cashflow forecasts you have should you be successful in receiving the funds.


  • Show historic figures

Show your business was successful prior to the pandemic.  Share with them how you can get your business back there once life returns to normal.


Here are some posts you will find useful.

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