What is the Recovery Loan Scheme?
A new loan scheme to support access to finance for UK Businesses as they grow and recover from the disruption of the Coronavirus.
The Recovery Loan Scheme ensures businesses of any size can continue to access loans and other kinds of finance up to £10 million per business once the existing COVID-19 loan scheme finishes.
The existing COVID-19 Loan, Coronavirus Business Interruption Loan, is due to end on the 31st of March and the new Recovery Loan Scheme is due to launch on the 6th of April and will be available until the 31st of December 2021, subject to review.
What type of Finance is available?
- 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
No personal guarantees will be taken on facilities up to £250,000 and a borrower’s principal private residence cannot be taken as security.
Is my business eligible for the recovery loan?
- You will need to be a business trading in the UK
- Show that your business is viable or would be viable were it not for the pandemic
- Proof that your business has been impacted by the coronavirus pandemic
- Proof that your business is not in collective insolvency proceedings
Businesses that have received support under the existing COVID-19 guaranteed loan schemes will still be eligible to access finance under this scheme if they meet all the criteria.
Who cannot apply for the recovery loan?
- Banks, building societies, insurers and reinsurers (not insurance brokers)
- Public sector bodies
- State funded primary and secondary schools
How can you apply?
The scheme will launch on the 6th of April 2021, further details on how to apply and details of accredited lenders will be released in due course. However, if you have any questions or have any queries about any other finance options, don’t hesitate to contact us today. Complete our contact us form and a member of our team will be in touch with you shortly.