Top questions about the Government-backed Recovery Loan Scheme answered

We’re delighted that we’re offering the Government’s Recovery Loan Scheme (RLS) once again, which allows us to yes to even more businesses and help them adapt during challenging times. Here’s everything you need to know about the new version of the scheme and how you can apply.  

What is the Recovery Loan Scheme (RLS)?

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

How much can I borrow under RLS? 

At Funding Circle we offer RLS loans from £25,001 to £250,000. If you’d like to borrow more, the scheme goes up to £2 million*.

Other key features of our offering include: 

• Terms from 2 to 6 years
• No early settlement fees 
• Decision in as little as 1 hour
• Account managers on hand to help

Can I apply for RLS even if I already have a Government-backed loan? 

Yes you can get an RLS loan if you have a Government scheme loan already, and there is no requirement to refinance any existing Government debt such as a Bounce Back loan.

What’s the eligibility criteria? 

To be eligible to apply for RLS with Funding Circle, you must: 

• Have a turnover of up to £45 million 
• Be trading in the UK for a minimum of 2 years
• Be a limited company 
• Use the loan for business purposes such as working capital or investment 
• Not be in difficulty or have any collective insolvency proceedings ongoing

How much will a RLS loan cost? 

The amount your RLS loan will cost will depend on the amount you want to borrow, your interest rate and your loan term. We charge a one-off completion fee when you take out your loan, and your interest rate will be calculated based on a number of factors, including your credit score and financials for business lending.

All our loans are fixed rate, so you’ll know exactly how much you’ll need to repay each month, and there’s no fee to settle early. 

Do I need a personal guarantee?

We ask for a personal guarantee on all loans, including those under RLS. However, Principal Private Residences cannot be taken as security under RLS.

Why is subsidy control relevant in the Recovery Loan Scheme?

Any Funding Circle loan offered to you under RLS is a type of Government subsidy because it is supported by the UK Government, and it gives advantage to your business. While you remain 100% liable to repay the loan in full, RLS is supported by a guarantee to the lender. The maximum amount of subsidy your business can receive will be subject to an applicable threshold.  You can find more information on the British Business Bank’s website. 

How can I apply? 

Thanks to our innovative technology, you only need to fill in one, simple 10-minute application on our website. Then, we’ll assess which product is right for you on the best possible terms, with a decision coming in as little as 1 hour.  If we can offer a business a loan on similar or better terms without RLS, we will do so. 

If you’re a limited company or LLP, you can apply and get a quote with no impact on your credit score, so you can assess your options with complete peace of mind. Find out more and get started here.

*Up to £2 million per business group: The maximum amount you can borrow under the scheme is £2 million per business group for borrowers outside the scope of the Northern Ireland Protocol, and up to £1 million per business group for Northern Ireland Protocol borrowers.