The Recovery Loan Scheme is geared towards helping businesses that were affected by the restrictions imposed due to the pandemic, but have a clear chance of long-term survival and growth with adequate finance in place.

Borrowing can be for any legitimate business purpose and personal guarantees cannot be taken for loans up to £250,000. Larger facilities are available but personal guarantees may be required (although can’t affect your home). Additionally, you are able to get multiple facilities with different lenders – e.g. can borrow £500,000 across two £250,000 facilities so no personal guarantee is needed.

The scheme will be open until 30 June 2022. Below we outline the details of the scheme such as eligibility and what information you need to complete before you approach a lender.

Details of the scheme

  • Business trading in UK
  • Proof of business ‘viability’ before the pandemic
  • Proof business has been impacted by coronavirus pandemic
  • Proof business is not in insolvency proceedings
  • Finance terms are up to 6 years for term loans and asset finance
  • Finance terms up to 3 years for overdrafts and invoice finance
  • No turnover restriction
  • Interest and fees paid from the outset
  • Businesses who have taken out CBILS and BBLS can access the scheme
  • Maximum loan of 25% of 2019 turnover
  • £2m or £6m for a group (subject to a maximum turnover of £45million)
  • With loans up to £250k there are no personal guarantees allowed which makes it attractive to perhaps consolidate other loans and even on larger facilities the guarantees are less onerous
  • Term loans and overdrafts between £25,001 and £10m per business
  • Invoice finance and asset finance between £1,000 and £10m per business
  • Up to date annual accounts submitted to Companies House
  • Management Accounts for the period since accounting year end
  • 6, 9 and 12-month cash flow demonstrating repaying delayed VAT, PAYE etc
  • Most major banks are offering recovery loans
  • Funding Circle are also offering these loans as an alternative

Talk to us

As with any lending it should be approached with caution because it can increase the risks to your business as ultimately these will need to be paid back. Having a business plan or rough cashflow forecast will be helpful in making sure your businesses is taking on the correct commitment to borrowing.

Talk to us and we can assess your personal circumstances and help you come to the best decision and help you with everything you need to approach a lender.

Contact me today!

Emma White



01474 853856

Send me a message