2 June 2021

Recovery Loan Scheme update

The Recovery Loan Scheme supports access to finance for UK businesses as they grow and recover from the disruption of the COVID-19 pandemic.

Up to £10 million is available per business. The actual amount offered and the terms are at the discretion of participating lenders.

The government guarantees 80% of the finance to the lender. As the borrower, you are always 100% liable for the debt.

The scheme is open until 31 December 2021, subject to review.

Loans are available through a network of accredited lenders, listed on the British Business Bank’s website.


You can apply for a loan if your business:

  • is trading in the UK

You need to show that your business:

  • would be viable were it not for the pandemic
  • has been adversely impacted by the pandemic
  • is not in collective insolvency proceedings (unless your business is in scope of the Northern Ireland Protocol in which case different eligibility rules may apply)

Business that received support under the earlier COVID-19 guaranteed loan schemes are still eligible to access finance under this scheme if they meet all other eligibility criteria.

Who cannot apply

Businesses from any sector can apply, except:

  • banks, building societies, insurers and reinsurers (but not insurance brokers)
  • public-sector bodies
  • state-funded primary and secondary schools

What you can get

  • term loans or overdrafts of between £25,001 and £10 million per business
  • invoice or asset finance of between £1,000 and £10 million per business

No personal guarantees will be taken on facilities up to £250,000, and a borrower’s principal private residence cannot be taken as security.

How long the loan is for

The maximum length of the facility depends on the type of finance you apply for and will be:

  • up to 3 years for overdrafts and invoice finance facilities
  • up to 6 years for loans and asset finance facilities

How to apply

Find a lender accredited to offer Recovery Loans from the list on the British Business Bank website: Recovery Loan Scheme: current accredited lenders – British Business Bank (british-business-bank.co.uk)

Financial support for businesses during coronavirus (COVID-19)

The website outlining what financial support you can get for your business has also been updated.  This helps businesses find out how to access the support that has been made available, who is eligible, when the schemes open and how to apply.

Here are the links to the available government schemes:

How we can help

All companies will come up against a financial challenge at some point in their business lifecycle, and this is more apparent than ever in light of the pandemic. Customers paying late, an office move, or some important research and development you need to undertake to enhance or develop products or advance your business – meeting these financial needs can make the difference between surviving and thriving or business failure.

Many companies decide to use business finance in these situations, to pay for the up-front project costs.

But, when you are busy running the day-to-day, it is hard to find the time to research all of the funding options available — let alone decide which one to apply for.

Our specialists at Beavis Morgan group company, BM Structured Finance, provide impartial advice on all aspects of business finance, advising and assisting clients in sourcing the right financial products for their specific business needs, as follows:

  • Sourcing and restructuring working capital finance, enhancing liquidity and maximising growth.
  • Raising finance secured on debtors, stock, plant and machinery and property. We can even raise unsecured finance.
  • Helping lenders refinance clients that no longer meet their criteria.
  • Sourcing development and investment finance for property businesses.

BM Structured Finance’s expertise lies in our deep understanding of the finance market and the products each financier offers. We can then match the most suitable products and work with you to ensure compatibility and satisfaction, adding value to your business or client relationship.

To find the right finance for your situation quickly and easily, contact Mariske Byrnes in the first instance, who will put you in touch with a member of the BM Structured Finance team.

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