The Coronavirus Recovery Loan Scheme was launched in April 2021 for the purpose of providing financial support to businesses across the UK following the impact of the coronavirus pandemic. The scheme has been extended until the 30th June 2022 with the following changes having taken effect from 1st January 2022.

  • The scheme will only be open to businesses with a turnover not exceeding £45m per annum
  • The maximum amount of finance available will be £2 million per business (maximum amount per Group limited to £6m)
  • The guarantee coverage that the government will provide to lenders will be reduced to 70%

Who can apply for the scheme

You can apply to the scheme if your business has been affected by the pandemic, you will need to confirm to the lender you have been impacted.

You must be carrying out trading activity in the UK

You must have a viable business proposition. 

The scheme will only be open to businesses with a turnover not exceeding £45m per annum.

 You may still be eligible if you have already borrowed from other coronavirus loan schemes such as the Bounce Back Loan Scheme or the Coronavirus Business Interruption Loan Scheme. However, the amount you are able to borrow under one of these existing schemes my limit the amount you are able to borrow from the Recovery Loan Scheme and must be able to afford to take out additional debt finance. 

How it works

The Recovery Loan Scheme is available through a number of lenders including our preferred business banking provider Starling Bank. The Recovery Loan Scheme gives the lender a government-backed guarantee against the outstanding balance of the facility. As the borrower, you are always 100% liable for the debt.

If you're borrowing more than £250,000 or less the lender won't take any form of personal guarantee. 

If you're borrowing more than £250,000 the lender has the discretion to decide whether to take personal guarantees. However, above £250,000 the maximum amount that can be covered under the Recovery Loan Scheme is capped at a maximum of 20% of the outstanding balance of the Recovery Loan Scheme facility after the proceeds of business assets have been applied. Also, no personal guarantees can be held over Principal Private Residences.

You will need to approach the lender yourself, if one lender turns you down you can still approach other lenders within the scheme. 

What you will need to supply to your lender

You will need to provide evidence you can afford to repay the loan and will likely be asked for the following documents.

  • Management accounts
  • Business plan
  • Historic accounts
  • Details of assets

The decision of whether your business is eligible will be decided by your lender.

To find out more information about the Recovery Loan Scheme, you can access the British Business Bank  Recovery Loan Scheme FAQ's here.