Recovery Loan Scheme update

As we move past the four year anniversary of the imposition of the first Pandemic Lockdown, the Recovery Loan Scheme, the last remaining Pandemic business support initiative, has been updated and rebranded.

As of July 2024, it will become known as the Growth Guarantee Scheme, and has been extended to March 2026.  

Here’s a reminder of the key points of the scheme:

• Businesses can borrow between £25,001 to £2million per business group, although the actual amount and term offered will be at the discretion of the lender. Asset finance, debt loans, invoice finance and business acquisition can all be supported through the scheme.
• The maximum term is up to 6 years for loans and asset finance facilities, or 3 years for overdrafts and invoice finance facilities.
• The Government guarantees 70% of the amount financed to the lender, but the borrower is liable for 100% of the debt.
• Lenders will only offer through the scheme if they are unable to offer a facility on better terms without the guarantee.
• Borrowers under the Scheme must be UK based, have a turnover below £45million and be able to prove the business is viable.
• Lenders may take personal guarantees for facilities of all sizes, though a borrower’s principal private residence cannot be taken as security.

Though specific requirements will vary, as usual, lenders are likely to want the following in support of any application:

• Management accounts
• Business plan
• Historic accounts
• Details of assets
• Details of previous Pandemic subsidy awards

If you’re considering an application and would like to talk through any of the above, or other aspect of the process, please get in touch. We have contacts who can help you find lenders who may be more receptive than some of more usual options, so please do shout if you need to!