Recovery Loan Scheme to support businesses

The Recovery Loan Scheme is the latest in this series of initiatives to help businesses by providing access to working capital.

The scheme runs from 6 April to 31 December 2021. The financial support it provides comes in various forms, such as loans, overdraft facilities, asset finance and invoice finance. The amounts available can be as low as just £1,000 (through invoice or asset finance) up to £10 million.

To help give the lenders confidence in providing the funds, the government guarantees 80% of this finance. To help give businesses the confidence to borrow, no personal guarantees will be required on facilities up to £250,000. A borrower’s principal private residence is also protected from being used as security.

The Recovery Loan Scheme is open to all UK businesses that can show they have suffered negative impact from the coronavirus pandemic. It’s available to firms in almost every sector excluding banks, building societies, insurers and reinsurance. Companies in collective insolvency proceedings are also ineligible.

Recovery Loan Scheme key points

• Open to businesses trading in the UK that have been impacted by the coronavirus pandemic.
• Business must be viable, or would be if not for the pandemic, and not in collective insolvency proceedings.
• Scheme runs 6 April 2021 to 31 December 2021.
• Loans and other finance facilities available from £1,000 to £10 million.
• Can be used for any legitimate business purpose.
• Interest and fees will be charged.
• No personal guarantees on facilities under £250,000.
• Repayment term up to six years, depending on type of facility.

If your business has suffered in any way because of the coronavirus pandemic and would benefit from additional working capital, take a look at your options under the Recovery Loan Scheme.