Recovery loan scheme

If you need to access finance to help your business recover from the effects of the COVID-19 pandemic, the Recovery Loan Scheme may be for you.

Nature of the scheme

The Recovery Loan Scheme is designed to provide access to finance in order to support businesses as they recover from the disruption caused by the COVID-19 pandemic. Although, as the borrower, you will remain liable for 100% of the debt, to encourage lenders to participate in the scheme, the Government provides a guarantee to the lender for 80% of the finance.


You may be eligible for a Recovery Loan if your business is trading in the UK. To qualify, you must be able to demonstrate that your business would be viable were it not for the pandemic and that your business has been adversely affected by the pandemic. Furthermore, you must not be in collective insolvency proceedings.

You can still apply for a Recovery Loan if you have already taken out a Bounce Back Loan or a Coronavirus Business Interruption loan.

Available finance

Finance is available under the Recovery Loan Scheme for:

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

You will not need to provide a personal guarantee on facilities of up to £250,000, and where a personal guarantee is required, your main residence will not be taken as security.

The loan period depends on the type of finance provided. The maximum period is set at three years for overdrafts and invoice finance facilities and at six years for loans and asset finance facilities.

How to apply

Applications are made direct to the lender. You can find an accredited lender offering Recovery Loans on the Business Bank website.

We can help

Contact us to find out how we can help you address your financing needs: Pi Accountancy | Expert Business Advice | Gloucester & Swindon (

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