Recovery Loan Scheme

Supporting your business through the pandemic

We closed applications for this scheme on 13 May 2022. If you applied before then we’ll get in touch soon, there’s no need to call us.

What is the Recovery Loan Scheme?

We closed applications for this scheme on 13 May 2022. If you applied before then we’ll get in touch soon, there’s no need to call us.

Businesses with a viable business proposition can apply for term loans of between £25,001 and £2 million (maximum £6m per group) to help them get through the pandemic.

You can find more information on the British Business Bank and Bank of England websites.

Loans up to £2 million

You can apply online for a loan of between £25,001 and £2 million (maximum £6 million per group), if you’ve had a business relationship with us for at least the last 12 months. 

If you’d like to borrow less than £25,000, please take a look at our business loans.

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.

A key aim of the Recovery Loan Scheme is to improve the terms on offer to businesses. It provides lenders with a partial government-backed guarantee on loans up to £2 million (maximum £6 million per group). 

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. 

At the Autumn Budget 2021, the government announced that the Recovery Loan Scheme will be extended by six months to 30 June 2022. We closed applications to the scheme on 13 May 2022. This makes sure we can process the applications before the end date.

The main changes to the recovery loan scheme are:

  • The scheme is open to borrowers who have an aggregate group turnover that does not exceed £45,000,000
  • The maximum amount of finance available is £2 million per business (maximum amount per group limited to £6 million)
  • The guarantee coverage that the government will provide to lenders is reduced to 70%

Important information

  • 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
  • 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
  • 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
  • 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
  • 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
  • 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

Frequently asked questions

Alternative borrowing options


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.