Recovery Loan Scheme – Lenders Offering “Term Loans”

The Recovery Loan Scheme can be divided in several different “lending facilities”, this one is going to be looking at Recovery Loan “Term Loans”.

The scheme itself does have several other options that can be taken by business owners:

The Term Loan is one that most business owners are going to be interested in applying for and making use of as part of the Recovery Loan scheme, you simply pick a lender, apply for the amount you want and they will either approve your application and pay you out the loan which needs to be paid back with interest, or they will decline you.

Overview of Recovery Loan Term Loan:

Start and End Dates

  • Launch Date: 6 April 2021
  • Available Until: 31 December 2021

May be Extended

What Can I Use the Money For?

  • Cashflow
  • Investment
  • Growth

In Layman’s Terms – Any Legit Business Purpose

How Much Can I Apply For?

  • Minimum £25,001.00
  • Maximum £10,000,000.00

If That is Too Much Consider Asset or Invoice Finance

Other Bits n Bobs Worth Knowing:

  • No Turnover Restriction for Applicants
  • Loan Term is 6 Years
  • Applicant Pays All Fees/Interest
  • Applicants Will Be Credit Checked*

*Lenders Have Discretion to Lend or Not and Can “Overlook” Things

Government Guarantee

The government guarantees 80% of the finance to the lender to ensure they continue to have the confidence to lend to businesses. That means the accredited lenders should set their interest rates with that guarantee in mind and not take the p*ss.

The scheme is called the Recovery Loan Scheme after all and should be designed by lenders to ensure business owners can access the scheme, can get the funds swiftly and is not simply a way for those lenders to cash in on the suffering of those business owners and their need to access business related finance to help their businesses survive and “recover”.


You will be able to apply for a loan if your business:

  • Is trading in the UK

You will need to show that your business:

  • 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 – further details will be provided in due course

Businesses that have received support under the existing COVID-19 guaranteed loan schemes will still be eligible to access finance under this scheme if they meet all other eligibility criteria.

No personal guarantees will be taken on facilities up to £250,000, and a borrower’s principal private residence cannot be taken as security.

Recovery Loan Scheme Term Loan Lenders

The “Comments” and “Feedback” box will be filled in once I receive feedback from those applying with the respective lenders. I have no problem whatsoever shaming any bank/lender that starts ripping off business owners with sky high interest rates and/or fees, or pulls any stunts, many lenders/banks did pull stunts and tortured many of their customers during the Bounce Back Loan Scheme and will be shamed accordingly if they do so during this scheme.

LenderStatusWebsite LinkCommentsFeedback
Arbuthnot LathamACCREDITED Arbuthnot Latham Website
Bank of ScotlandACCREDITEDBank of Scotland WebsitePhone up to apply, be warned mass instant declines reported already.
BarclaysACCREDITEDBarclays WebsiteRequest a call back online to applyBarclays Finally Sending Out Text Messages Acknowledging Recovery Loan Applicants – But Be Warned About the Bank Referral Scheme
Clydesdale BankACCREDITED Clydesdale Bank WebsitePhone up to apply you need to be an existing customerClydesdale Bank Takes the “Easy” Option (for them) When it Comes to Offering Recovery Loans
Danske BankACCREDITED Danske Bank WebsiteCall your Relationship Manager
HSBCACCREDITED HSBC WebsiteApply online, you may be waiting up to 10 days for a response. HSBC Eager to Offer Recovery Loans - But What are the Chances of Getting One?
Lloyds BankACCREDITED Lloyds Bank WebsitePhone up to apply, be warned mass instant declines reported already.Lloyds Bank Turn from King of the Castle into the Dirty Rascal with Recovery Loans
NatwestACCREDITED NatWest WebsiteApply Online - Bank now warning applicants to expect long processing times
Oaknorth BankACCREDITED Oaknorth Bank Website
ParagonACCREDITED Paragon Website
SantanderACCREDITED Santander Website"we are not doing the recovery loan for business banking or personal account customers. Santander Business Banking will focus on supporting customers through our existing range of lending solutions."Who Let Santander Cherry Pick Who to Offer Recovery Loans To?
Secure TrustACCREDITED Secure Trust Website
Skipton Business FinanceACCREDITED Skipton Business Website
RBSACCREDITED RBS WebsiteApply Online - Bank now warning applicants to expect long processing times
Ulster BankACCREDITED Ulster Bank WebsiteApply Online - Bank now warning applicants to expect long processing times
Yorkshire BankACCREDITED Yorkshire Bank Website

You are strongly advised to think long and hard about making use of the Recovery Loan Scheme and seek professional financial/legal advice if you are thinking about doing so.