British Business Bank announces new lenders under the Bounce Back Loan Scheme for smaller businesses
- Bank of Ireland UK and Skipton Business Finance to join 14 existing Bounce Back Loan Scheme accredited lenders
- Shawbrook Bank, MarketFinance, Bank Leumi and Capital on Tap to join 60+ existing CBILS accredited lenders
Today the British Business Bank has announced that it has approved two new lenders for accreditation under the Bounce Bank Loan Scheme. The scheme is intended to target small and micro businesses in all sectors, with loans from £2k up to 25% of the business’ turnover with a maximum loan of £50k.
Bank of Ireland UK and Skipton Business Finance join the existing 14 lenders who have been accredited since the scheme opened last week. They will be able to provide financial support to smaller businesses across the UK that are losing revenue and seeing their cashflow disrupted, as a result of the Covid-19 outbreak.
Additionally, the Bank has announced it has approved four new lenders for accreditation under the Coronavirus Business Interruption Loan Scheme (CBILS). Shawbrook Bank, MarketFinance, Bank Leumi (UK) plc (including Leumi ABL Ltd) and Capital on Tap join the 60+ existing CBILS accredited lenders that already offer the scheme to smaller businesses across the UK.
Following their approval, these new lenders will be putting in place the operations required to start lending under the scheme and will confirm shortly the dates from which they will be ready to start receiving Bounce Back Loan Scheme or CBILS applications from smaller businesses across the UK.
Keith Morgan, CEO, British Business Bank, said: “Accredited lenders have continued to see an incredible demand for the Covid-19 business loan schemes. Since launch, we have grown the total number of accredited lenders to the schemes by more than 50 percent to provide even greater coverage and choice for smaller businesses. The announcement of a further six new lenders means they will be able to deploy vital funding and get additional finance flowing to smaller businesses across the UK as quickly as possible.”
All lenders accredited under the Coronavirus Business Interruption Loan Scheme (CBILS) have been invited to become accredited to offer loans under the terms of the Bounce Back Loan Scheme. The British Business Bank is working at pace to accredit those lenders who want to provide lending under the scheme to further extend its reach and provide more choice for smaller businesses
The Bounce Back Loan Scheme has previously accredited 14 lenders. These are AIB, Bank of Scotland, Barclays, Clydesdale Bank & Yorkshire Bank, Danske Bank, HSBC, Lloyds Bank, NatWest, Santander, Starling Bank, The Co-operative Bank, TSB, RBS and Ulster Bank.
 Credit institutions (falling within the remit of the Bank Recovery and Resolution Directive), public sector bodies, a state -funded primary or secondary schools and insurance companies are not eligible to apply and subject to State-Aid restrictions.
Notes to Editors
The following lenders have been newly accredited under different variants of the CBIL scheme:
|Lender||CBILS variant||CBILS offer|
|Bank Leumi (UK) plc||Term Loans / Overdrafts||Bank Leumi (UK) plc will support its customers across the UK by providing CBILS loans and overdrafts from £50,001 to £5m and from £1m to £5m for new, medium-sized businesses.|
|Leumi ABL Ltd||Invoice Finance / Term Loans / Overdrafts||Leumi ABL can provide CBILS term loans, revolving credit and invoice finance facilities from £50,001 to £5m to both existing and new client businesses throughout the UK.|
|Capital on Tap||Overdrafts||Capital on Tap offers revolving credit facilities up to £100,000 to provide flexible, fast funding for SMEs of every industry (except those not eligible under CBILS) all over the UK.|
|MarketFinance||Term Loans / Invoice Finance||MarketFinance can provide term loans from £50,001 to £150,000 and invoice finance from £50,001 to £5m, to all UK SMEs with a minimum turnover of £150k.|
|Shawbrook Bank||Term Loans||Shawbrook Bank can provide term loans from £250k to £5m on a 1 to 3 year repayment period to support existing Shawbrook business customers experiencing lost or deferred revenues as a direct result of the Covid-19. These CBILS Term Loans are available to established Shawbrook customers who trade in the UK and were in good financial health before the outbreak.|
Covid-19 Loan Schemes
Bounce Back Loans Scheme (BBLS)
BBLS is a demand-led scheme offering lending that targets small and micro businesses, providing loans from £2k up to 25% of the business’ turnover with a maximum loan of £50k. Providing lenders with a 100% government-backed guarantee, the standardised application form means a faster process with many loans becoming available within days.
The Bounce Back Loans Scheme enables businesses to obtain a six-year term loan at a government set interest rate of 2.5% a year. The government will cover interest payable in the first year.
Information on eligibility criteria and how to apply can be found on the British Business Bank website.
Coronavirus Business Interruption Loan Scheme (CBILS)
CBILS is delivered through more than 60 British Business Bank accredited lenders, and is designed to support the continued provision of finance to UK smaller businesses (SMEs) during the Covid-19 outbreak.
CBILS is a demand-led scheme offering lending to smaller businesses with turnover of up to £45m. The scheme supports a wide range of business finance products, including term loans, overdrafts, invoice finance and asset finance facilities. Invoice finance and asset finance facilities are available from £1k to £5m, while term loan and revolving credit facilities are available from £50k to £5m (the lower limit for these has increased from £1k following the introduction of BBLS). The government makes a payment to cover interest and lender-levied fees under CBILS for the first 12 months.
Detailed information on CBILS can be found on the British Business Bank website.
Coronavirus Large Business Interruption Loan Scheme (CLBILS)
CLBILS is a demand led scheme targeted at larger businesses with a turnover of more than £45m. It offers term loans, revolving credit facilities, invoice finance and asset finance. Businesses with turnover between £45m and £250m can apply for facilities of up to £25m, while businesses with turnover of over £250m can apply for facilities of up to £50m.
The Future Fund will support the UK’s innovative businesses currently affected by Covid-19. These businesses have been unable to access other government business support programmes, such as CBILS, because they are either pre-revenue or pre-profit and typically rely on equity investment. The scheme will deliver an initial commitment of £250m of new government funding through convertible loan notes which will be unlocked by private investment on a match funded basis. The government scheme, which will be developed in partnership with the British Business Bank with the intention of launching for applications in May, will initially be open until the end of September.
About the British Business Bank
The British Business Bank is the UK government’s economic development bank. Established in November 2014, its mission is to make finance markets for smaller businesses work more effectively, enabling those businesses to prosper, grow and build UK economic activity. Its remit is to design, deliver and efficiently manage UK-wide smaller business access to finance programmes for the UK government.
The British Business Bank programmes are supporting more than £7.2bn of finance to over 93,000 smaller businesses (as at end of September 2019).
As well as increasing both supply and diversity of finance for UK smaller businesses through its programmes, the Bank works to raise awareness of the finance options available to smaller businesses:
- The Business Finance Guide (published in partnership with the ICAEW and a further 21 business and finance organisations) impartially sets out the range of finance options available to businesses at all stages – from start-ups to SMEs and growing mid-sized companies. Businesses can take the interactive journey at thebusinessfinanceguide.co.uk.
- The British Business Bank Finance Hub provides independent and impartial information to high-growth businesses about their finance options, featuring short films, expert guides, checklists and articles from finance providers to help make their application a success. The new site also features case studies and learnings from real businesses to guide businesses through the process of applying for growth finance.
As the holding company of the group operating under the trading name of British Business Bank, British Business Bank plc is wholly owned by HM Government and is not authorised or regulated by the Prudential Regulation Authority (PRA) or the Financial Conduct Authority (FCA). The British Business Bank operates under its own brand name through a number of subsidiaries, none of which are authorised and regulated by the FCA.
British Business Bank plc and its principal operating subsidiaries are not banking institutions and do not operate as such. A complete legal structure chart for British Business Bank plc and its subsidiaries can be found on the British Business Bank plc website.