Purpose and form of funding
The purpose of the scheme is to help support business recovery, investment and growth, following the pandemic and the end of the transition period.
Funding will take the form of loans and other kinds of finance, up to £10m per business.
How it works
The Recovery Loan Scheme will be available through a network of accredited lenders, with details to be made public in due course.
The government will guarantee to the lender 80% of the finance.
Already accessed Covid-19 debt schemes?
Businesses that have received support under Bounce Back Loans (BBLS), Coronavirus Business interruption Loan Scheme (CBILS) and Coronavirus Large Business Interruption Loan Scheme (CLBILS) can access this scheme, if they meet all other eligibility criteria.
Key features of the scheme
Types of finance: term loans, overdrafts, asset finance and invoice finance facilities
Maximum facilities: £10m
Minimum facilities: £1k (asset and invoice finance); £25k (term loans and overdrafts)
Term: up to 6 years (terms loans and asset finance); up to 3 years (overdrafts and invoice finance)
Interest and fees: the business will meet the cost of intertest payments and fees associated with the facility
Personal guarantees: no personal guarantees will be taken on facilities up to £250k
Full terms will be available from the British Business Bank.
Eligibility and additional features
A business must be trading in the UK and be able to show that it:
- is viable or would be viable, were it not for the pandemic
- has been impacted by the pandemic
- is not in collective insolvency proceedings
There are no eligibility restrictions based on business turnover.
Credit checks: Lenders will be required to undertake credit and fraud checks for all applicants. The checks and approach may vary between lenders.
Ineligible businesses and sectors:
- banks, building societies, insurers and reinsurers (but not insurance brokers)
- public-sector bodies
- state-funded primary and secondary schools
Full details will be available in due course from the British Business Bank