Launched on 6 April 2021, the Recovery Loan Scheme supports access to finance for UK businesses as they grow and recover after the COVID-19 pandemic and transition period.
- Up to £10 million is available per business.
- The government guarantees 80% of the finance to the lender.
- As the borrower, you are always 100% liable for the debt.
- The scheme is open until 31 December 2021, subject to review.
- Loans are available through a network of accredited lenders, listed on the British Business Bank’s website.
You can apply for a loan if your business:
You need to show that your business:
- would be viable were it not for the pandemic
- has been adversely impacted by the pandemic
- is not in collective insolvency proceedings (unless your business is in scope of the Northern Ireland Protocol in which case different eligibility rules may apply)
Business that received support under the earlier COVID-19 guaranteed loan schemes are still eligible to access finance under this scheme if they meet all other eligibility criteria.
What you can get
- term loans or overdrafts of between £25,001 and £10 million per business
- invoice or asset finance of between £1,000 and £10 million per business
No personal guarantees will be taken on facilities up to £250,000, and a borrower’s principal private residence cannot be taken as security.
How long the loan is for
The maximum length of the facility depends on the type of finance you apply for and will be:
- up to 3 years for overdrafts and invoice finance facilities
- up to 6 years for loans and asset finance facilities
Further detailed information including how to find a lender accredited to offer Recovery Loans can be found on the British Business Bank website.
Source: Recovery Loan Scheme - GOV.UK (www.gov.uk)
Posted on: Wednesday 7th April 2021