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Recovery Loan Scheme changes

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The Chancellor announced in his Autumn Budget 2021 that the Recovery Loan Scheme would be extended to 30 June 2022. The Recovery Loan Scheme has already offered funding of over £1 billion, so the scheme is very much open for business.

Changes from 1 January 2022

Along with the announcement of the extension to the scheme, Rishi Sunak also confirmed that there will be some changes that come into effect for all offers made from 1 January 2022. The changes are as follows:

  • The scheme will only be available to small and medium sized enterprises. The remaining parts of the eligibility criteria will be unchanged.
  • The amount of finance available will be capped at £2 million per business.
  • The guarantee that the Government will provide to lenders will be reduced from the current 80% to 70%.

The above changes will reduce the scope and lending capabilities of the scheme. They will mean that large businesses that are currently eligible for the scheme will no longer be eligible after 1 January 2022. It will also see a reduction in the total amount of funding that’s available to businesses.

Below is the current eligibility criteria and funding that’s available up to 31 December 2021. If you’re considering using the Recovery Loan Scheme, it would be sensible to make enquiries sooner rather than later.

Who’s eligible?

Currently, to be eligible for a loan, your business needs to be trading in the UK and must demonstrate that it meets the following criteria:

  • Is viable or would be viable were it not for the pandemic.
  • Has been impacted by the coronavirus pandemic.
  • Is not in collective insolvency proceedings.

Finance available

The following types of finance will be available:

  • Loans will be available between £25,001 and £10 million with terms of up to 6 years.
  • Overdrafts will also be available between £25,001 and £10 million but terms will be up to 3 years.
  • Invoice and asset financing will be available between £1,000 and £10 million per business, with terms of up to 6 years for asset financing and up to 3 years for invoice financing.

More details on the Recovery Loan Scheme can be found here.

How to apply

To apply for a loan under the Recovery Loan Scheme, you need to approach one of the accredited lenders. A list of these can be found here. Ideally, you should apply via the lender’s website.

Not every accredited lender is providing every type of finance available under the Recovery Loan Scheme, and the amount of finance offered will vary between lenders. You can view what each lender is offering via their websites.

Need help?

If you have any questions on the Recovery Loan Scheme, please get in touch with your usual contact. You can find contact details in the Our People section of the website. Alternatively, call 0330 024 0888 or email

James Caley


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Larking Gowen


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