The Recovery Loan Scheme is aimed at helping businesses of all sizes to access financial help in a bid to recover from the pandemic, and it will ensure that businesses will continue to benefit from government guaranteed finance until the end of the year.
To date, the UK government has already provided £75 billion worth of loans to support over 1.6 UK businesses. The Recovery Loan Scheme is part of the government’s £350 billion aid package to support millions of workers across the nation, and the Recovery Loan Scheme will run until 31 December 2021.
The loans include 80% government guarantee to the lender and an interest rate capped at 14.99%; borrowers are 100% liable for the debt. Within the Recovery Loan Scheme, businesses can get:
As we safely reopen parts of our economy, our new Recovery Loan Scheme will ensure that businesses continue to have access to the finance they need as we move out of this crisis.
You are eligible for the Recovery Loan Scheme if your business is trading in the UK, and you must be able to show that:
Businesses within any sector are eligible to apply for the scheme, unless they are:
Depending on the type of finance you are applying for, the maximum length of the facility will be as follows:
If your business meets all of the criteria mentioned in this blog, you are eligible to apply for the Recovery Loan Scheme. The next step you need to take is to find a lender accredited to offer the Recovery Loans – a list of permitted lenders is available on the British Business Bank website.
After deciding on a lender, you must approach them yourself. The amount of finance provided to you varies between lenders so it’s important to check the lenders’ websites for information on the amount of finance they are able to offer before you make a decision.
You are required to provide evidence when you apply for the Recovery Loan Scheme to confirm that you have the means to repay the loan. This evidence can include your:
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