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Recovery Loan Scheme

Supporting your business following the pandemic

Get the financial support you need to help your business recover and grow following the pandemic, through this government-backed scheme.

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

Key features and benefits

This scheme is designed to support UK businesses with a viable business proposition that are struggling following the pandemic with term loans of between £25,001 and £10 million (maximum £30m per group).

Further information can also be found on the British Business Bank and Bank of England websites. 

Loans up to £10 million

You can currently apply for a loan of between £25,001 and £10 million from us (maximum £30m per group).

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

Flexible terms available

Spread repayments of your loan from three months to six years.

Available to businesses that have already received support

You can still apply for the Recovery Loan Scheme if you’ve taken out a Bounce Back Loan or Coronavirus Business Interruption Loan providing you meet the eligibility criteria and lending assessments. The amount you’ve borrowed under a previous scheme may in certain circumstances limit the amount you may borrow under the Recovery Loan Scheme. 

Is your business eligible?

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

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

  1. The most you can apply for is
    • Up to 25% of your 2019 total turnover, or
    • Twice your 2019 (or latest) annual wage bill
      minus any outstanding amounts you may have on any Coronavirus Business Interruption Loans or Coronavirus Large Business Interruption Loans
  2. There is no turnover restriction for businesses accessing the scheme
  3. Loans are available to most business sectors, but restrictions apply1
  4. Loans can be used for business purposes, including managing cashflow, investment and growth. They’re designed to support businesses that can afford to take out additional finance for these purposes
  5. Are UK-based and operate in the UK
  6. Require a loan to enable trade during short-to-medium term difficulty
  7. Can afford to repay the loan for a term up to six years

Additional details

  • To apply for the Recovery Loan Scheme, you need to have had a business relationship with us for at least the last 12 months
  • All applications will be subject to credit and fraud checks, as well as lending assessments. Subject to status. Terms and conditions apply. The checks and approach may vary between lenders
  • Businesses will be responsible for interest payments and any associated fees from the outset 
  • We will consider whether you have a viable business proposition but may disregard any concerns over your short-to-medium term business performance due to the uncertainty and impact of coronavirus
  • The scheme provides the lender with a government-backed 80% guarantee, subject to the annual claim limit
  • Security may be required, subject to application
  • We won’t 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

Important information

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

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

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. British Business Bank plc is a development bank wholly owned by HM Government. It is not authorised or regulated by the PRA or the FCA. Visit british-business-bank.co.uk/recovery-loan-scheme.

A key aim of the Recovery Loan Scheme is to improve the terms on offer to businesses. If we can offer your business a commercial loan for the same amount on similar or better terms, without requiring the guarantee provided by the Recovery Loan Scheme, then we will.

Business finance support 

The British Business Bank has a range of guidance and resources available to all businesses, including content on managing your cashflow and a list of independent advice services.

How to apply

Before you apply, please check you’re eligible and be aware that

  • To apply for the Recovery Loan Scheme, you need to have had a business relationship with us for at least the last 12 months
  • Your application will be subject to credit and fraud checks, as well as lending assessments. Applications are also subject to status. Terms and conditions apply 
  • Unlike other previous government coronavirus schemes, you’ll be responsible for interest payments and any associated fees from the outset
  • We’ll contact you as soon as possible, 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, such as financial accounts

Frequently asked questions

Alternative borrowing options

Loans

Business loans

You know your business. We know how to help.

We could help you expand, invest in equipment or borrow working capital with secured and unsecured business loans – or you could see if the government-backed Recovery Loan Scheme is suitable for your needs.

Business overdrafts

Business overdrafts

A flexible overdraft that moves with your business demands

An overdraft could help you deal with seasonal trends and short-term cashflow challenges. Borrow up to £50,000 unsecured – the money could be available to you in days.

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Invoice finance

Unlock cash tied up in your invoices

Unlock cash tied up in outstanding invoices to improve your cashflow, help you to seize new opportunities and run your business more efficiently – provided by our partner MarketFinance.

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Business money management

Help keep your business finances healthy

Develop your business money-management skills with our guides on managing cashflow and adapting to coronavirus.