Kent and Medway Business Fund - Recovery Loan

About the loan

The KMBF Recovery Loan offers 0% loans between £50,000 and £100,000.

The loan is available to those who have been trading for at least 3 years as of 31 December 2019 and who operate in eligible sectors.

It must be used to ensure the future sustainability of a business. The loan must also enable a return to growth in the medium to long term, through the funding of working capital. Examples of this include:

  • day to day running costs such as paying supplier invoices, existing staff costs in the short term
  • operational cash flow, such as purchasing new stock, paying maintenance and utility bills
  • gap funding, where commercial funding sources cannot provide the full funding requirements. This includes overdrafts and invoice finance.

For more information please read our:

Application dates

The Kent and Medway Business Fund (KMBF) Recovery Loan scheme opens to pre-applications on 3 August 2020 and will close on 14 August 2020.

The loan terms are:

  • A 5% administrative charge is applied on payment of funds.
  • It can be used to have a 1 year repayment holiday.
  • It must be supported by a personal guarantee, equivalent to 10% of the value of the loan for limited companies.
  • Security or personal guarantees must be provided.

Following a 1 year repayment holiday:

  • small sized businesses with fewer than 50 employees can have a loan repayment period of 5 years or less
  • medium sized businesses with 50 to 250 employees can have a loan repayment of 1 year or less.

Applicants will need to specify in their business plans how:

  • the support of these working capital costs will enable their business to survive and thrive
  • you will adapt to changing markets
  • you will protect jobs.

The loan should not be used to replace current finance arrangements such as:

  • repaying a credit card
  • paying off a business overdraft
  • replacing a finance arrangement on a van, unless finance is being withdrawn by your current lender.

You can apply if you or your business:

  • have suffered significant business disruption resulting from the COVID-19 outbreak e.g. lost trade
  • have applied for or been granted a Coronavirus Business Interruption Loan (CBIL) or bounce back loan. If you have been declined, or have not sought this funding, you may still be eligible, however reasons for refusal or not seeking this finance must be given and is taken into account in funding decisions.
  • have been viable and not in difficulty before 31 December 2019 and not currently subject to collections or collective insolvency proceedings.
  • are a sole trader, partnership, or a limited company
  • are based or looking to locate to Kent and Medway
  • have been trading for at least 3 years.
  • are protecting or creating jobs
  • currently have fewer than 250 employees
  • can provide personal guarantees equivalent to 10% of the value of the loan between £50,000 and £100,000.

You cannot apply if you business is in the following sectors:

  • coal and steel production
  • defence sector activities
  • energy generation
  • fisheries and aquaculture
  • franchises
  • hospital, medical services and publicly and privately-owned nursing homes, or care related
  • hostel or residential activities
  • organisations engaged in political activity or lobbying at any level
  • activity of an exclusively religious nature
  • primary production and processing of agricultural products
  • professional services e.g. accountants, legal, financial, insurance
  • road haulage, distribution and warehousing
  • schools (including state, free schools and private)
  • shipbuilding
  • synthetic fibres.

Application dates

Applications open: 3 August 2020

Applications close: 14 August 2020


To apply you will need to complete a pre-application form.

Please note that only one application can be made to any of the KMBF schemes at a time. Any additional applications will be rejected

Complete the pre-application form

For more information please read our:

If you require support you can contact one of the following:

  • for general application questions email
  • the Kent and Medway Growth Hub is government funded service provided by Kent Invicta Chamber of Commerce that provides help and support to new and existing local businesses.
  • Locate in Kent offers a range of free services including commercial property searches and business finance assistance to help businesses expand in or relocate to Kent and Medway.
  • your district council for additional support and advice about services available in your district area. If you are located in medway contact Medway Council.

Why not speak to your local bank about the support they can give you?  The following banks are working in partnership with us to support this initiative:

Support from your district council

Contact your district council for additional support and advice about services available in your district area.

If you are located in medway contact Medway Council.