The fourteen new accredited lenders will support small and medium enterprises as well as large enterprises suffering cashflow disruptions arising from COVID-19 outbreak

British Business Bank

British Business Bank selects new lenders to support during COVID-19 outbreak. (Credit: Pixabay/Paweł Szymczuk.)

The British Business Bank has given its approval to a total of fourteen new lenders for accreditation under the Coronavirus Business Interruption Loan Scheme (CBILS) and Coronavirus Large Business Interruption Loan Scheme (CLBILS).

Out of the fourteen new lenders, four new lenders that include Allied Irish Bank (GB)/AIB (NI), ThinCats, Paragon Bank and Independent Growth Finance (IGF) will join 48 existing CBILS accredited lenders.

The CBILS scheme provides financial support to smaller businesses (SMEs) across the UK which are losing revenue and facing cashflow disruptions, resulting from the outbreak of the COVID-19 pandemic.

With the approval, each of the four lender will place operations needed to start lending under the scheme and will confirm shortly the dates from which they can start receiving CBILS applications from the SMEs across the UK.

Over 80% of SME’s in the UK are financially connected with the 50 CBILS accredited lenders

It is estimated more than 80% of the UK’s SMEs have financial relationship with over 50 CBILS accredited lenders.

To further extend the reach of the scheme, British Business Bank is also speeding up the process of approving new lenders.

The UK’s Budget had originally announced an initial £1bn in government-backed lending available through CBILS. Subsequently the government announced that it would be a demand-led programme, offering whatever the market needs.

Through the scheme, up to £5m to businesses will be provided, who are experiencing lost or deferred revenues, leading to disruption in the cashflow.

Under the second scheme CLBILS, mid-sized and larger UK businesses with turnover above £45m, will be supported.

The bank has accredited 10 lenders to offer term loans and/or overdrafts. The banks under the CLBILS include Bank of Scotland, Barclays, Clydesdale Bank & Yorkshire Bank, Danske Bank, HSBC, Lloyds Bank, NatWest, Santander, RBS and Ulster Bank.

The CLBILS scheme will offer up to £25m for businesses with turnover from £45m up to £250m, and facilities of up to £50m for those businesses with a turnover of more than £250m, for businesses disrupted by the outbreak.

British Business Bank CEO Keith Morgan said: “Accredited lenders have continued to see an incredible demand for CBILS, so the Bank is helping to meet that demand and provide even more choice for smaller businesses by approving additional lenders for accreditation to the scheme.

“The announcement of 14 new lenders for both CBILS and CLBILS means these newly accredited lenders will be able to deploy vital funding and get additional finance flowing to smaller businesses across the UK as quickly as possible.”