The Recovery Loan Scheme helps businesses obtain finance backed by a government guarantee when ordinary lending is difficult. A solicitor in this area assists by reviewing and negotiating the loan terms, guarantees, and security offered by the borrower, and by coordinating with lenders, accountants, and other advisers to complete the application package. They may draft or check declarations, facilitate disclosure of financial information, and advise on any post-drawdown obligations, such as reporting requirements or compliance checks that follow approval.
Why this work is usually handled by a solicitor
A solicitor explains the scope and limits of the government guarantee, checks that terms align with regulatory requirements, and protects the client through proper conduct of the transaction. They verify that the deal is properly documented, ensure client money handling complies with professional standards, and manage communications with lenders to avoid misinterpretation or conflict once funds are drawn.
