Recovery Loan Scheme

Recovery Loan Scheme. Image credit: AdobeStock

Recovery Loan Scheme

(Partner Content) The new Recovery Loan Scheme was launched on 6 April 2021. The new scheme allows businesses of any size to access loans and other kinds of finance between £25,000 and £10 million.

Recovery Loan Scheme

Recovery Loan Scheme. Image credit: AdobeStock

The recovery loan scheme will remain open until 31 December 2021 (subject to review). The scheme is intended to provide further support to businesses to help them recover and grow following the disruption of the pandemic and the end of the transition period. The new scheme can be used as an additional loan on top of previous support received from other schemes such as the Bounce Back Loan Scheme and Coronavirus Business Interruption Loan Scheme

Under the scheme, the government will provide lenders with a guarantee of 80% on eligible loans provided to UK businesses. The recovery loan scheme will be open to all businesses, including those who have already received support under the existing COVID-19 guaranteed loan schemes.

The following finance options are available:

  • Term loans and overdrafts are available between £25,001 and £10 million per business.
  • Invoice finance and asset finance are available between £1,000 and £10 million per business.

Finance terms are for up to six years for term loans and asset finance facilities. For overdrafts and invoice finance facilities, terms will be up to three years. No personal guarantees will be taken on facilities up to £250,000, and a borrower’s principal private residence cannot be taken as security. 26 lenders have already been accredited for the recovery loan scheme and more are expected shortly.

No business owner should have to suffer the financial tragedy of over-trading through lack of planning. If you need help, pick up the phone or reach out to Exceed who can help.”