Coronavirus: Support With Cashflow

Recovery Loans

The new Government-backed Recovery Loan Scheme has now been launched. This loan scheme ensures businesses of any size can continue to access loans and other kinds of finance up to £10 million per business as the existing COVID-19 loan schemes close, providing support as businesses recover and grow following the disruption of the pandemic and the end of the transition period.

  • Once received, the finance can be used for any legitimate business purpose, including growth and investment.
  • The government guarantees 80% of the finance to the lender to ensure they continue to have the confidence to lend to businesses.
  • The scheme is open until 31 December 2021, subject to review.
  • Loans will be available through a network of accredited lenders (see which lenders have been accredited to date here)
  • Term loans and overdrafts will be available between £25,001 and £10 million per business.
  • Invoice finance and asset finance will be available between £1,000 and £10 million per business.
  • Interest rates have been capped at 14.99% and are expected to be much lower than that in the vast majority of cases
  • Finance terms are up to six years for term loans and asset finance facilities. For overdrafts and invoice finance facilities, terms will be up to three years.
  • No personal guarantees will be taken on facilities up to £250,000, and a borrower’s principal private residence cannot be taken as security.

The Recovery Loan Scheme can be used as an additional loan on top of support received from the emergency schemes – such as the Bounce Back Loan Scheme and Coronavirus Business Interruption Loan Scheme.

Read guidance on the Recovery Loan and find out how to apply here