Three banks join Bounce Back

The British Business Bank (BBB) has approved three new lenders for accreditation under the Bounce Bank Loan Scheme, which is aimed at small and micro firms in all sectors, offering loans of up to £50,000.

Allied Irish Bank in the UK, the Co-operative Bank and Starling Bank join TSB, which was also accredited this week. They join Bank of Scotland, Barclays, Clydesdale Bank & Yorkshire Bank, Danske Bank, HSBC, Lloyds Bank, Natwest, Santander, TSB, Royal Bank of Scotland and Ulster Bank.

The scheme is 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. It enables businesses to obtain a six-year term loan at a government-set interest rate of 2.5 per cent a year. The government will cover interest payable in the first year.

After approval of the new trio is approved, they 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 applications from smaller businesses across the UK.

All lenders accredited under the Coronavirus Business Interruption Loan Scheme have been invited to be given the green light to offer loans under the terms of the Bounce Back Loan Scheme. The BBB is working at pace to accredit those who want to provide lending under the scheme to further extend its reach and provide more choice for smaller businesses.

BBB boss Keith Morgan said: “There has been incredible demand from smaller businesses for Bounce Back Loans since the scheme launched this week. Onboarding lenders with the capability and means to deliver the scheme rapidly means that more UK smaller businesses will be able to access the finance they need to get through the current pandemic.”