Government-Backed: Recovery Loan Scheme

The scheme makes available:

• up to £2 million per business group
• up to £1 million for business groups in scope of the Northern Ireland Protocol

The actual amount and terms offered are at the discretion of participating lenders.

The government guarantees 70% of the finance to the lender. As the borrower, you are always 100% liable for the debt.

Eligibility

You may be eligible for a loan through the Recovery Loan Scheme if your business:

• is trading in the UK
• has a turnover of £45 million or less

You need to show that your business:

• is viable
• is not in difficulty

Businesses that received support under the earlier COVID-19 loan guarantee schemes and earlier phases of the Recovery Loan Scheme are eligible to access finance under this scheme if they meet all other eligibility criteria.

Charities and further education colleges that generate not more than 50% of their turnover from trading activity must confirm they have been impacted by COVID-19 in order to be eligible for the scheme. There is no requirement for any other sectors to have been impacted by COVID-19.

What you can borrow

• term loans or overdrafts of between £25,001 and £2 million per business group
• term loans or overdrafts of between £25,001 and £1 million for businesses in scope of the Northern Ireland Protocol
• invoice or asset finance of between £1,000 and £2 million per business group
• invoice or asset finance of between £1,000 and £1 million for businesses in scope of the Northern Ireland Protocol

Lenders may take personal guarantees for facilities of all sizes. A borrower’s principal private residence cannot be taken as security.

How long the facility is for

The maximum length of the facility depends on the type of finance you apply for and will be:

• up to 6 years for loans and asset finance facilities
• up to 3 years for overdrafts and invoice finance facilities

‍