Recovery Loan Scheme
On 3 March 2021, the Chancellor announced that a new loan scheme will be available to support access to finance for UK businesses as they grow and recover from disruption caused by COVID-19. The scheme launches on 6 April 2021 and is open until 31 December 2021, subject to review.
The Recovery Loan Scheme ensures that businesses of any size can continue to access loans and other kinds of finance up to £10 million per business once the existing COVID-19 loan schemes end.
Types of available finance:
Term loans and overdrafts between £25,001 and £10 million per business
Invoice finance and asset finance between £1,000 and £10 million per business
Finance terms are up to six years for term loans and asset finance facilities. For overdrafts and invoice finance facilities, terms will be up to three years.
The government guarantees 80% of the finance to the lender to ensure they continue to have the confidence to lend to businesses. Loans will be available through a network of accredited lenders, whose names will be made public in due course.
The finance secured can be used for any legitimate business purpose, including growth and investment.