The Recovery Loan Scheme is now closed

At Funding Circle we offered Recovery Loans from £25,001 to £250,000. If you’d have liked to borrow more, the scheme goes up to £2 million.

The scheme provided lenders with a 70% government-backed guarantee if a business was unable to repay the loan, and the lender has gone through their normal recovery process. The borrower always remained 100% liable for the debt.

The amount your Recovery Loan cost depended on the amount of money you wanted to borrow, your interest rate and your loan term.

We charged a one-off completion fee when you took out your loan, and your interest rate was calculated based on a number of factors, including your credit score and financials for business lending at the time.

There was also no fee if you wanted to settle the loan early. All our loans are fixed rate, so you’ll know exactly how much you’ll need to repay each month and what the cost of borrowing is.

RLS loans were supported by a Government guarantee and count as a form of subsidy. There are limits on the amount of subsidy a business can receive. You can find more information on this on the British Business Bank’s website, or in your Subsidy Certification document if and when you accepted a loan offer.

All borrowers needed to answer some questions to determine whether they were inside or outside the scope of the Northern Ireland Protocol, to determine the relevant subsidy limit and hence the potential maximum amount they could borrow under RLS.

Please note that the Government guarantee was to the lender, and your business remained 100% liable for the full loan amount.

We ask for a personal guarantee on all loans, including those taken under the Recovery Loan Scheme (RLS). However, Principal Private Residences could not be taken as security under RLS.

The British Business Bank has a range of guidance and resources available to all businesses, including content on managing your cashflow and a list of independent advice services.