Recovery Loan Scheme

The Recovery Loan Scheme is managed by the British Business Bank on behalf of, and with the financial backing of, the Secretary of State for Business, Energy and Industrial Strategy.

The Recovery Loan Scheme will support access to finance for UK businesses as they recover and grow following the pandemic.

It provides lenders with a government-backed guarantee of 80% on loans up to £10 million (maximum £30m per group).

How much can I apply for with the Recovery Loan Scheme?

You can currently apply for a loan of between £25,001 and £10 million from us. For loans up to £25,000, please take a look our business loans.

Is the Recovery Loan Scheme a loan or a grant?

The Recovery Loan Scheme is not a grant. It provides a guarantee to us so that we can provide finance, but businesses still have to repay the loan in full. You’re responsible for repaying 100% of the loan. The provision of the government guarantee does not in any way reduce your liability for the whole amount of the loan.

As the borrower is liable in full for the debt, we may request additional security.

• Security may be required, subject to application
• We will not take personal guarantees as security for any Recovery Loan Scheme loans 
• The borrower’s primary residential property can’t be taken as security under the scheme

The government has also announced a number of other support measures that businesses may be eligible for. You can find more information on these measures are available on Gov.uk.

What products are covered under the Recovery Loan Scheme?

We’re offering Recovery Loan Scheme term loan facilities.

What if I want to borrow less than £25,000?

For loans up to £25,000, please take a look our business loans.

How long will I have to apply for the Recovery Loan Scheme?

You can apply up to 31 December 2021, subject to review.

How quickly can businesses receive the money?

It will depend on the individual business’ circumstances and funding requirements. Under this scheme a number of checks need to be implemented to satisfy the scheme’s eligibility criteria as well as lending assessments.

What do I do if my Recovery Loan Scheme application is unsuccessful?

If your application isn’t successful, we have a range of other flexible borrowing solutions that may help. 

Next steps

Before you apply, you should be aware that your application will be subject to credit and fraud checks, as well as lending assessments. Subject to status. Terms and conditions apply. And unlike other government-backed business loan schemes, you’ll be responsible for interest payments and any associated fees from the outset.    

To apply for the Recovery Loan Scheme, please request a callback. We’ll contact you as soon as possible, when we’ll ask you some questions to see if you’re eligible, and you’ll need to give us some information about your business to support your application.

Do I need to give security for a Recovery Loan Scheme loan?

Security may be required, subject to application. We will not take personal guarantees as security for any Recovery Loan Scheme loans. The borrower’s primary residential property can’t be taken as security under the scheme.

What kind of interest rates will businesses need to pay?

Fixed and variable interest rates will be available.

Businesses will be required to meet the costs of interest payments and any fees associated with the Recovery Loan Scheme loan from the outset. 

Can I refinance a loan into the Recovery Loan Scheme?

Yes, loans can be refinanced into the Recovery Loan Scheme, subject to application and eligibility. 

Can businesses from all sectors apply?

The Recovery Loan Scheme is available to businesses affected by coronavirus (Covid-19) that meet the eligibility criteria.

Loans are available to most business sectors, but restrictions apply¹.

To find out more or apply, please fill in this form to request a callback.

What documentation will you need to provide?

The business will need to provide documentation confirming the financial status of the business, such as financial accounts.

Your loan repayment is made up of two parts: your capital repayment and your interest payment.

• Your capital repayments pay off the amount of the loan that you have borrowed, and they’ll be the same each month
• Your loan also incurs interest, so each month you’ll be charged interest on the remaining capital balance – that’s the amount of money you still owe
• Because of this, the amount of interest you pay each month will go down, as you repay your loan
• This means your first monthly repayment will be the highest, and the total monthly repayment amount (made up of both your loan and the interest) will be different every month

Your loan agreement sets out how much your capital repayment amount will be each month, but it doesn’t include your interest. We understand this can be confusing, so you’ll also get a letter telling you exactly what your next total repayment amount is every month – we’ll send it around 15 days before your repayment is due.