Introducing... The Recovery Loan Scheme

29 March 2021

The CBILS loan scheme will finish on March 31st, which is the deadline for new applications.

There will still be a period of grace to draw down the facility, provided that the loan application is received by the lender by the deadline.


From 6th April this year, the CBILS and Bounce Back Loans will be replaced by the Recovery Loan Scheme. Full details are still being worked out with the lenders, but this is what we know so far :

  • The scheme’s initially intended to run from 6th April to 31st December 2021.
  • The maximum loan size will be increased to £10m (from £5m currently).
  • There will be no turnover restrictions for the new loan scheme.
  • The government will not be covering the interest and fees for the first year (unlike CBILS and BBL).
  • Unlike the ‘light touch’ credit approval process for Bounce Back Loans, all Recovery Loans will be subject to normal lender underwriting processes.
  • However, it will be possible to have a Recovery loan in addition to any CBILS or BBL facilities outstanding.
  • The key criteria here is that the facility must be for additional finance (ie not refinancing existing borrowings).
  • The loan can be used for any business purpose, including growth and investment.

Summary :

It’s not too late to access a CBILS loan, but you need to get your application in by March 31st.

The new Recovery Loan scheme will be more flexible, but subject to normal lender underwriting and without the interest and fee subsidy from the government for the first twelve months.

While the deadline’s soon approaching for the CBILS and Bounce Back Loan submissions, you may be eligibile for the Recovery Loan Scheme. If you’d like to discuss your opportunities, contact our Corporate Finance team today on 01604 746760.

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