Recovery Loan Scheme

What is the Recovery Loan Scheme?

The Recovery Loan Scheme was announced in the Chancellor’s 2021 Budget and is the follow-up to the CBILS, CLBILS and BBLS schemes. This new scheme is designed to help businesses manage cash flow, investment and growth post-lockdown.

The finance can be used for any business purpose. Hiring new staff, boosting cash flow, buying more stock to meet an increase in demand and investing in new equipment for growth are just a few examples of “legitimate business purposes”.

How does the Recovery Loan Scheme work?

• To encourage more lending to UK SMEs, the Government will provide a 70% guarantee to the lender. It is worth remembering that any interest and fees associated with the finance will not be covered by the government.

• Any finance taken out up to £250,000 won’t need to have a personal guarantee, but you may have to provide one for amounts over this. However, you won’t be required to offer your principal private residence as security.

• There’s a maximum turnover of £45M and the scheme is only available to SMEs.

• Businesses operating in most sectors can apply for the Recovery Loan Scheme. You can also apply if you’ve already received support from the CBILS, CLBILS or BBLS initiatives. 

Recovery Loan Scheme - Features and benefits through Funding Options

• Scheme runs until 30 June 2022

• Available to SMEs only, turnover cap of £45M

• Delivered through four finance types: Term Loans, Overdrafts, Invoice Finance and Asset Finance 

• Loans from £1,000 to £2,000,000 (depending on finance type)

• No personal guarantees on loans up to £250k

• Government-backed

• Loan term of up to 6 years (depending on finance type)

• A dedicated Finance Specialist will talk you through the process


• It’s free, no obligation and won’t affect you credit score