Recovery Loan Scheme

Support provided by Gov UK British Business Bank

What does this involve?

This scheme has now closed. The Recovery Loan Scheme will provide support to UK businesses as they recover and grow following the disruption of the coronavirus (COVID-19) pandemic.

The scheme ensures that businesses of any size can continue to access loans and other kinds of finance up to £2 million per business once the existing COVID-19 loan schemes close.

The UK Government will guarantee 70% of the finance to the lender to give them the confidence to lend to businesses.

  • Term loans and overdrafts will be available in amounts between £25,001 and £2 million per business (maximum £6 million per group).
  • Invoice finance and asset finance will be available in amounts between £1,000 and £2 million per business (maximum £6 million per group).

The scheme is only open to businesses with a turnover not exceeding £45 million per year.

Once received, the finance can be used for any legitimate business purpose, including growth and investment.

Loans will be available through a network of accredited lenders - you can search for a lender on the British Business Bank website.

Am I eligible?

Yes, if your business:

  • is trading in the UK
  • is viable or would be viable were it not for the pandemic
  • has been impacted by the coronavirus pandemic
  • is not in collective insolvency proceedings - further details will be provided in due course
  • does not have a turnover exceeding £45 million per year

If you have already received support through the existing COVID-19 guaranteed loan schemes, you are still eligible for this scheme as long as you meet all other eligibility criteria.

Businesses from all sectors can apply, but the following are not eligible:

  • banks, building societies, insurers and reinsurers (but not insurance brokers)
  • public-sector bodies
  • state-funded primary and secondary schools

What does this cost?

Loans must be repaid according to your individual lending agreement. Interest and other fees may apply.

Who is this for?

Businesses in the UK which have been impacted by the coronavirus (COVID-19) pandemic.

How long does this take?

Finance terms are up to 6 years for term loans and asset finance facilities.

For overdrafts and invoice finance facilities, terms will be up to 3 years.

Important information

No personal guarantees will be taken on facilities up to £250,000, and a borrower’s principal private residence will not be accepted as security.

Next steps

Visit the British Business Bank website for more information and to find an approved lender.

Support provided by Gov UK British Business Bank

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