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Learn about the Recovery Loan Scheme, the new program replacing the Bounce Back Loan Scheme

The emergency funding provided by the original coronavirus loan programs will come to an end on March 31st, 2021. With the government’s focus now on business recovery and growth, a new scheme will be launched on April 6th, 2021.

The new Covid-19 Recovery Loan Scheme aims to offer financing to businesses of all sizes to aid in their post-pandemic growth and development. The scheme is designed to be both flexible and easily accessible, with multiple funding options available.

What are the workings of the Recovery Loan Scheme and what are the criteria for eligibility?

Get an overview of how Recovery Loans operate


The government has issued an 80% guarantee for loans offered through the new Covid-19 Recovery Loan Scheme, which is aimed at providing businesses with financing to grow and develop post-pandemic. The guarantee aims to incentivize finance providers to lend to businesses but ultimately, it remains the borrower’s responsibility to repay the loan if default occurs.

This scheme offers a range of funding options, including term loans, overdrafts, invoice finance, and asset finance, with loan terms ranging from 3 to 6 years. The amount available per business ranges from £1,000 to £10 million, depending on the type of funding.

Accredited lenders will participate in the scheme, offering term loans and asset finance with a 6-year term, and overdrafts and invoice finance with a 3-year term. For loans under £250,000, directors won’t be required to provide a personal guarantee. However, for lending over this amount, the Principal Private Residence cannot be used as collateral.

Find out if you meet the qualifications for the Recovery Loan Scheme


To be eligible for the Covid-19 Recovery Loan Scheme, a business must meet the following criteria:

  • Operate in the UK
  • Have been impacted by the coronavirus pandemic
  • Show future viability
  • Not currently involved in any insolvency proceedings
  • This scheme is open to businesses of all sizes that fulfil these requirements, providing the necessary funding to grow and thrive post-pandemic.

If you have already received other forms of government coronavirus funding, you can still apply for a Recovery Loan. However, unlike the previous loan schemes, there is no interest-free period and fees will be required. The Recovery Loan Scheme will be available until December 31st, 2021.

Discover the steps for applying for a Recovery Loan


To apply for a Recovery Loan, you can reach out directly to a lender of your choice. A list of participating lenders can be found on the British Business Bank website. The lender will conduct credit and fraud checks, and the process may vary depending on the institution.

Lenders are expected to assess applications with a long-term perspective, as if the pandemic had not occurred. If the loan is approved, it can be used for any legitimate business purpose, such as growth and development or stabilising cash flow.

For more information about the Covid-19 Recovery Loan Scheme, feel free to contact the partner-led team at We offer free same-day consultations and have a widespread network of offices throughout the UK.

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