Guidance on Recovery Loan Scheme

With the final application dates for support under the existing Coronavirus Loan Schemes (Coronavirus Business Interruption Loan Scheme and Bounce Back Loans) being 31 March 2021, a new loan scheme to support UK business as they grow and recover from the disruption of the COVID-19 pandemic has been launched by the Government.

The scheme launches on 6 April 2021 and is open until 31 December 2021, subject to review. Loans will be available through a network of accredited lenders, whose names will be made public in due course.

What business finance options will be available?

  • Asset Finance
  • Business Loans
  • Hire Purchase
  • Invoice Finance

Benefits of the Recovery Loan Scheme

  • The government guarantees 80% of the finance to the lender to ensure they continue to have the confidence to lend to businesses.
  • No personal guarantees will be taken on facilities up to £250,000, and a borrower’s principal private residence cannot be taken as security.
  • Term loans and overdrafts will be available between £25,001 and £10 million per business.
  • Invoice finance and asset finance will be available 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.
  • No minimum annual turnover requirement.
  • No minimum trading history requirement.


Portman Asset Finance are here to help businesses access the Recovery Loan Scheme for emergency funding throughout this situation if the business:

  • Is trading in the UK
  • Have a borrowing proposal which the lender would consider viable, were it not for the current pandemic
  • Self-certify that it has been adversely impacted by the coronavirus (COVID-19)
  • Is not in collective insolvency proceedings.

Businesses who have accessed previous Coronavirus Loan Schemes will still be eligible for finance under this scheme if they meet the eligibility criteria.

How to apply?

The scheme will launch on 6 April 2021. Further details on how to apply and details of accredited lenders will be released in due course.