About the Recovery Loan Scheme
The Recovery Loan Scheme was a UK government-backed scheme for business lending, run by the British Business Bank through accredited lenders. It has been replaced for new lending by the Growth Guarantee Scheme, but businesses with existing loans are still repaying them.
The government guaranteed part of each loan to the lender. The business is responsible for repaying the full amount, at the rate and on the terms set out in its agreement.
Worked example
A £100,000 loan at 8% over 5 years costs £2,027.64 a month, £121,658.37 in total.
Interest is worked out monthly at one twelfth of the annual rate. Lenders may calculate interest differently (some charge it daily), so your actual payments can differ slightly.
If repayments are a struggle
Talk to your lender early. Lenders may be able to discuss options, but you remain liable for the debt.
Inputs for the recovery loan scheme calculator
Amount to borrow
The amount of your loan, or the balance still owed.
Interest rate (per year)
The annual interest rate on your loan. The rate shown is only an example, so enter the rate from your quote.
Term
How many years you'll repay over. Use the remaining term if you've already been repaying.
CALCULATOR QUESTIONS
Recovery loan scheme calculator questions
Can I still apply for the Recovery Loan Scheme?
No. New government-backed lending now goes through the Growth Guarantee Scheme.
Who sets the interest rate?
The lender, within the scheme's rules. Your rate is in your loan agreement.
Am I fully liable for the loan?
Yes. The government guarantee covers the lender, not the borrower.
What replaced the Recovery Loan Scheme?
The Growth Guarantee Scheme, which also provides a partial government guarantee to lenders.