Recovery Loan Scheme

Recovery Loan Scheme

Kingsway Finance has received formal accreditation from the British Business Bank, as an approved lender for the new iteration of the government-backed Recovery Loan Scheme (RLS), which launched in August 2022.

As an accredited lender for the Recovery Loan Scheme we will have more funding options available to help clients old and new navigate their way forward.

Kingsway Finance will be offering term loan RLS funding from £25,001 to £250,000 for Professional Loans and Commercial Loans over four to five years.
Upfront fees of 1% will be applicable.

The scheme is designed to appeal to businesses that can afford to take out additional finance, providing them with continued support as they steer a path towards a sustainable recovery. Funds can be used for business purposes including managing cashflow, investment and growth.

We will be offering these new facilities to a panel of selected brokers, who will be contacted directly by a member of our team.

All applications for a Recovery Loan Scheme facility from Kingsway Finance must be submitted via referrals from partner brokers.

Is your business eligible for a Recovery Loan Scheme facility?

If your business fits the following criteria, you could be eligible to apply for RLS funding from Kingsway Finance:

  • A viable operation, or one that would be viable were it not for the pandemic.
  • Trading in England and Wales.
  • Not part of collective insolvency proceedings or deemed to be a business in difficulty.
  • Businesses with a turnover not exceeding £45m per annum (on a group basis, where part of a group).

Proposals submitted to Kingsway Finance will also need to comply with the stipulations of our standard credit policy.

Please note the facility must be used to support trading in the UK and cannot be used to support certain export related activities. There are certain restrictions on the use of proceeds of facilities in the agriculture, fisheries and aquiculture, and road freight transport sectors for borrowers impacted by the Northern Ireland Protocol.

You will not be able to apply if your business is:

  • A bank, building society, insurer or reinsurer (but insurance brokers can apply).
  • A public-sector body.
  • A state funded primary or secondary school.

All applications for a Recovery Loan Scheme facility from Kingsway Finance must be submitted via referrals from partner brokers.

About the Recovery Loan Scheme

Working With British Business Bank

The new iteration of the Recovery Loan Scheme (RLS) launched in August 2022 and is designed to support access to finance for UK small businesses as they look to invest and grow.

The Recovery Loan Scheme aims to improve the terms on offer to borrowers. If a lender can offer a commercial loan on better terms, they will do so.

Businesses that took out a CBILS, CLBILS, BBLS or RLS facility before 30 June 2022 are not prevented from accessing RLS from August 2022, although in some cases it may reduce the amount a business can borrow.

Recovery Loan Scheme facilities are provided at the discretion of the lender. Lenders are required to undertake their standard credit and fraud checks for all applicants.

Scheme features include:

  • Up to £2m facility per business group: the maximum amount of a facility provided under the scheme is £2m per business group for borrowers outside the scope of the Northern Ireland Protocol, and up to £1m per business group for Northern Ireland Protocol borrowers. Minimum facility sizes vary, starting at £1,000 for asset and invoice finance and £25,001 for term loans and overdrafts. A borrower in the scope of the Northern Ireland Protocol may borrow up to £1m per business group, unless such a borrower operates in a sector where aid limits are reduced, in which case the maximum that can be borrowed is subject to a lower cap. These include agriculture, fisheries/ aquaculture and road freight haulage.
  • Term length: term loans and asset finance facilities are available from three months, for up to six years, with overdrafts and invoice finance available from three months for up to three years.
  • Personal Guarantees: personal guarantees can be taken at the lender’s discretion, in line with their normal commercial lending practices. Principal Private Residences cannot be taken as security within the Scheme.
  • Guarantee to the Lender: the scheme provides the lender with a government-backed guarantee against the outstanding balance of the facility. The borrower always remains 100% liable for the debt.
  • Interest and fees to be paid by the borrower from the outset: businesses are required to meet the costs of interest payments and any fees associated with the RLS facility.
  • Subsidy: the assistance provided through RLS, like many government-backed business support activities, is regarded as a subsidy and is deemed to benefit the borrower. There is a limit to the amount of subsidy that may be received by a borrower, and its wider group, over any rolling three-year period. Any previous subsidy may reduce the amount a business can borrow.
    All businesses in receipt of a subsidy from a publicly-funded programme should be provided with a written statement, confirming the level and type of aid received.
    Borrowers will need to provide written confirmation that receipt of the RLS facility will not mean that the business exceeds the maximum amount of subsidy they are allowed to receive.
  • Northern Ireland Protocol: all borrowers will need to answer some questions to determine whether they are inside or outside the scope of the Northern Ireland Protocol, to determine the relevant subsidy limit and hence the potential maximum amount they can borrow under RLS.

Detailed information on RLS can be found on the British Business Bank website.

Business Finance Support
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:

The Recovery Loan Scheme (RLS) is managed by the British Business Bank on behalf of, and with the financial backing of the Secretary of State for Business, Energy and Industrial Strategy (BEIS). British Business Bank plc is a development bank wholly owned by HM Government. It is not authorised or regulated by the Prudential Regulation Authority (PRA) or the Financial Conduct Authority (FCA). Full details on RLS and the list of participating RLS lenders can be found on the British Business Bank website at:

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