Recovery Loan Scheme Future Fund Breakthrough

The recent Budget detailed two new lending products to support businesses once the current Covid-19 debt schemes – the Coronavirus Business Interruption Loan Scheme (CBILS), the Coronavirus Large Business Interruption Loan Scheme (CLBILS) and the Bounce Back Loan Scheme (BBLS) – close on 31 March 2021. Both schemes will be delivered by the British Business Bank.

Recovery Loan Scheme

The Recovery Loan Scheme will launch on 6 April 2021 and is scheduled to run until 31 December 2021.

The new scheme aims to help businesses affected by Covid-19 and can be used for any legitimate business purpose, including managing cashflow, investment and growth. It is designed to appeal to businesses that can afford to take out additional debt finance for these purposes.

The Government will provide an 80% guarantee to lenders but, unlike previous schemes, there is no repayment holiday, so interest, fees and capital repayments will start immediately.

  • Up to £10m facility per business. Minimum facility sizes vary, starting at £1,000 for asset and invoice finance, and £25,001 for term loans and overdrafts.
  • No turnover restriction for businesses accessing the scheme.
  • Wide range of products: Businesses will be able to choose from a variety of products: term loans, overdrafts, asset finance and invoice finance facilities.
  • Term loans and asset finance facilities are available for up to six years, with overdrafts and invoice finance available for up to three years.
  • Interest and fees to be paid by the business from the outset.
  • Businesses who have taken out a CBILS, CLBILS or BBLS facility will be able to access the new scheme, although the maximum they are allowed to borrow will depend on their lender’s assessment and scheme requirements.
  • Lenders will be required to undertake credit and fraud checks for all applicants. When making their assessment, lenders may overlook concerns over short-to-medium term performance owing to the pandemic. The checks and approach may vary between lenders.

Further information on the Recovery Loan Scheme will be made available on the British Business Bank website in due course.

Future Fund: Breakthrough

Future Fund: Breakthrough – will launch in early Summer 2021 and is a new £375m scheme that will encourage private investors to co-invest with government in high-growth innovative firms.

  • Focused on R&D intensive companies
  • Minimum investment round size of £20m
  • Must be a UK based company with significant UK operations
  • Application to be led by established venture capital investors (equity backed)

The scheme will be delivered by the British Business Bank, via its commercial subsidiary British Patient Capital. Further information is available on the British Business Bank website. (This new scheme is separate from the government’s Future Fund, now closed to new applications)

Contact us

To discuss this further, please contact Lee Humble at

This blog originally appeared on the website of our fellow MHA member firm, MHA Monahans.