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Recovery Loan Scheme


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.

Up to £10 million is available 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.

The scheme is open until 31 December 2021, subject to review.

Loans are available through a network of accredited lenders.



You can apply for a loan if your business:

  • is based in the UK


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.


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.  In some circumstances the amount previously borrowed under existing schemes may limit the amount you can borrow under the Recovery Loan Scheme.

Businesses from any sector can apply, except:

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


  • 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.

Interest rates have been capped at 14.99% and are expected to be much lower than that in the vast majority of cases.


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


You should first approach your own finance provider.  You may also consider approaching other lenders if you’re unable to access the finance you need.  You can find a lender accredited to offer Recovery Loans from the British Business Bank website, or get in touch with us and we can provide assistance.

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