Simply has started to put the operations in place needed to begin lending under the government scheme.
Despite nearing the close of the Coronavirus Business Interruption Loan Scheme’s (CBILS) lifespan, the British Business Bank has approved a new lender.
Alternative lender Simply will soon offer loans from £50,001 to £5m for SMEs with an annual turnover of up to £45m.
The newest lender added to the list of over 40 banks and non-bank lenders is not yet ready to begin accepting applications but will be taking applications from both new and existing businesses on its books.
To date, more than 1.2m UK businesses have accessed the government-backed loan schemes under lockdown, with over 59,000 SMEs accessing the CBILS loans that Simply will soon offer.
While CBILS was the first programme on offer, it has been eclipsed by its younger, smaller relative the Bounce Back Loan Scheme (BBLS) which gives the UK’s smallest businesses a 100-per-cent-government-backed loan from between £2,000 and £50,000.
Following the publishing of the latest figures from HM Treasury yesterday, Stephen Pegge, managing director of commercial finance and UK finance, said: “It is important to remember that any lending provided under government-backed schemes is a debt not a grant, and so firms should carefully consider their ability to repay before applying.”
Nearly £35bn has been lent under the BBLS, compared to just £13.4bn under CBILS.