About RLS

The Recovery Loan Scheme (RLS) launched on 6 April 2021 and supports access to finance for UK businesses as they recover and grow following the Covid-19 pandemic. RLS aims to help businesses affected by Covid-19 and can be used for business purposes, including, managing cashflow, investment and growth. It is designed to support businesses that can afford to take out additional finance for these purposes.

Up to £2m

The maximum value of a facility provided under the scheme is £2m, which can be available in a single drawdown or multiple drawdowns. The minimum for a Fiduciam RLS facility is £250k.

New and existing customers

Both Fiduciam’s existing customers and new customers can take advantage of Fiduciam’s RLS offering. The same benefits apply to both new and existing customers.

Refinance of existing debt

Subject to certain conditions, existing debt can be refinanced with a RLS facility.

Repayment terms of up to three years

Although RLS finance terms are up to six years for term loans, in the case of Fiduciam they are three years as we are a short-term lender.

Government-backed guarantee to the lender

The scheme provides the lender with a government-backed, guarantee against the outstanding facility balance. The borrower however always remains 100% liable for the debt.

Personal guarantees capped at 20%

Recoveries under personal guarantees are capped at a maximum of 20% of the outstanding balance of the RLS facility after the proceeds of business assets have been applied. A guarantor’s principal private residence cannot be taken as security to support a personal guarantee or as security for a RLS backed facility.

Access to multiple Covid-19 schemes

Businesses that have taken out a CBILS, CLBILS or BBLS facility are able to access the new scheme although the amount they have borrowed under a previous scheme may in certain circumstances limit the amount they may borrow under RLS.

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.

RLS eligibility criteria

Businesses from all sectors* can apply for the full amount of the facility. To be eligible for a facility under RLS, business must:

  • be UK based in its business activity;
  • have a borrowing proposal which, were it not for the current pandemic, would be considered viable by Fiduciam; and
  • self-certify that it has been adversely impacted by the Coronavirus.

At Autumn Budget 2021, the government announced that the Recovery Loan Scheme will be extended by six months to 30 June 2022, with changes applying to all offers made from the 1 January 2022

A key aim of the Recovery Loan Scheme is to improve the terms on offer to businesses, but if a lender can offer a business the choice of a commercial loan on better terms, without requiring the guarantee provided by the RLS, they should do so.

Full details on RLS eligibility criteria can be found on the British Business Bank website at: https://www.british-business-bank.co.uk/ourpartners/recovery-loan-scheme/

*Please note: the following are not eligible under RLS: banks, building societies, insurers and reinsurers (but not insurance brokers); public sector bodies and state funded primary and secondary schools.

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.

Fiduciam underwriting criteria

The RLS loans must be within Fiduciam’s standard lending criteria. Property security is required in line with Fiduciam’s standard lending policy.

Fiduciam loan products offered as RLS loans:

  • Business Bridge Loans
  • Refurbishment Loans
  • Permitted Development Loans
  • Development Loans

Maximum LTVs — non-trading properties:

  • 70% residential property
  • 70% semi-commercial property
  • 65% commercial property

Maximum LTVs — trading properties:

  • 70% vacant possession value, 60% operating value

Committed to SMEs

Fiduciam was also approved by the British Business Bank as an accredited lender to provide loans through the Coronavirus Business Interruption Loan Scheme (CBILS). We are proud to work with the British Business Bank to give SMEs a boost out of this crisis with CBILS and now with RLS.

If you are interested in learning more about our RLS loans, or would like to apply for a RLS loan, please contact us:



The Recovery Loan Scheme is 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: http://www.british-business-bank.co.uk/recovery-loan-scheme

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