The Recovery Loan Scheme – could it help your business get back on track?

The Recovery Loan Scheme is a government loan scheme that allows qualifying businesses to borrow up to £10 million – either as term loans, overdrafts, invoice finance or asset finance.

It replaces the now closed Coronavirus Business Interruption Loan Scheme (CBILS) and Bounce Back Loan Scheme (BBLS).

Available from 6 April 2021 and open to UK trading businesses of all sizes, the scheme allows eligible businesses to access up to £10 million in finance. Meeting the eligibility criteria means showing that the business:

  • Is trading in the UK
  • Is viable or would be viable were it not for the pandemic
  • Has been impacted by the coronavirus pandemic
  • Is not in collective insolvency proceedings – further details on this
  • condition will be provided in due course.

NOTE: businesses are eligible even if they have already taken out a loan under CBILS or BBLS.

What are the benefits of the Recovery Loan Scheme?

The Recovery loan Scheme is available between 6 April and 31 December 2021, giving a boost to working capital and the health of your balance sheet.

Businesses can borrow between £25,001 and £10 million per business in the form of a term loan or overdraft.

Alternatively, businesses can borrow between £1,000 and £10 million per business in the form of invoice finance or asset finance.

How does the Recovery Loan Scheme differ from CBILS?

What has stayed the same?

  • No personal guarantees up to £250k.
  • Same criteria for UK trading companies, being a viable business that is not in financial difficulty
  • Public sector, banks, building societies, insurers and reinsurers, and state funded primary and secondary schools cannot apply.
  • Finance terms are up to six years for term loans and asset finance facilities. For overdrafts and invoice finance facilities, terms will be up to three years.
  • The government guarantees 80% of the finance to the lender to ensure they continue to have confidence to lend.
  • A borrower’s principal private residence cannot be taken as security.

What is different?

  • Interest and fees will be paid by the business from the outset: companies would be required to meet the costs of interest payments and any fees associated with the facility.
  • Starts from £25k and goes up to £10m.
  • No turnover limit for applications (£45m previously).
  • No 25% of turnover limit.
  • No more secured product.
  • A business can apply for the Recovery Loan Scheme even if it has an existing BBL, CBIL or Coronavirus Large Business Interruption Loan (CLBIL).

How to apply for a Recovery Loan Scheme

To apply, please contact Lee Humble at