Govt confirms launch of Recovery Loan Scheme

The government has launched a new scheme to support UK businesses with access to finance as they recover from the coronavirus pandemic.

The Recovery Loan Scheme is open to applications from today and is scheduled to run until 31 December 2021, subject to review.

The new scheme will support borrowing of up to £10m for individual businesses and up to £30m across a group. Once received, the funds can be used for any legitimate business purpose, including managing cashflow, growth and investment.

The British Business Bank, which will administer the scheme on behalf of the government, suggested the scheme is designed to appeal to businesses that can afford to take out additional finance for these purposes.

Minimum facility sizes vary, starting at £1,000 for asset and invoice finance, and £25,001 for term loans and overdrafts.

Commenting on the launch of the scheme, Chancellor, Rishi Sunak, said: “We have stopped at nothing to protect jobs and livelihoods throughout the pandemic and as the situation has evolved we have ensured that our support continues to meet businesses needs.

“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.”

Businesses will be able to use the Recovery Loan Scheme as an additional loan on top of support received from other emergency schemes – such as the Bounce Back Loan Scheme and Coronavirus Business Interruption Loan Scheme – which were put into place last year.

According to the Treasury, the government’s emergency loan schemes have so far supported more than £75bn of finance for 1.6 million British businesses.

    Share Story:

Recent Stories


Will open banking revolutionise the lending industry
Adam Cadle speaks to Jack Tenwick, Head of UK Sales, Yolt Technology Services, about how to get the most out of your lending business and the role of open banking

Mortgage Insider Series 2 Episode 5: Outlook for the UK economy
Listen to our latest episode where we discuss the outlook for the UK economy. We hear from William Hobbs, Chief Investment Officer at Barclays Investment Solutions, who gives his view on what lies ahead for the UK after an unprecedented year of lockdowns, economic turbulence and business uncertainty.

FREE E-NEWS SIGN UP

Subscribe to our newsletter to receive breaking news and other industry announcements by email.

  Please tick here to confirm you are happy to receive third party promotions from carefully selected partners.