The Recovery Loan Scheme

The UK government recently launched the new Recovery Loan Scheme!

With businesses starting to get back on their feet, now is a good time to assess whether or not your business may need to utilise this scheme or if it can…


What is the Recovery Loan Scheme?

The government scrapped the previous COVID-19 loan schemes, such as the Bounce Back Loan Scheme (BBLS) and the Coronavirus Business Interruption Loan Scheme (CBILS), and they have been replaced by the Recovery Loan Scheme on Tuesday 6 April. The scheme is open until 31 December 2021 (subject to review) – “The Recovery Loan Scheme is to help businesses of any size access loans and other kinds of finance so they can recover after the pandemic and transition period.”


How much can I borrow?

  • Term loans or overdrafts of between £25,001 and £10 million per business
  • Invoice or asset finance available between £1,000 and £10 million per business

The actual amount offered and the terms are at the discretion of participating lenders. The government guarantees 80% of the finance to the lender. As the borrower, you are always 100% liable for the debt.

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


Am I eligible for a Recovery Loan?

You can apply for a loan if your business is trading in the UK, however you will 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)

Businesses 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. This means that you can apply even if you’ve taken out a BBLS or CBILS, although the amount you have borrowed under an existing scheme may in certain circumstances limit the amount you may borrow under this scheme.


How do I apply for a Recovery Loan?

Find a lender accredited to offer Recovery Loans from the list on the British Business Bank’s website.

You should approach a lender yourself, ideally via its website. When you apply for finance, you’ll need to provide certain evidence to show that you can afford to repay the loan.

This is likely to include the following (please contact us if you require any assistance gathering this information):

  • Management accounts
  • Business plan
  • Historic accounts
  • Details of assets

If one lender turns you down, you can still approach other lenders within the scheme.


If you have any questions or would like to speak to our team about your situation, then please get in touch! You can call on 01243 782 423 or head to our contact form!

See our webinar recording on the subject below (or listen to the podcast) – We also provide regular updates on our YouTube Channel, to see more you can subscribe here: Lewis Brownlee YouTube channel

The LB Business Broadcast – Podcast

You can also listen to our Weekly Roundup recordings on our Podcast!

It’s available on Apple, Spotify and Google – just search for ‘The LB Business Broadcast‘.