Folk2Folk is aiming to start accepting coronavirus business interruption loan scheme (CBILS) applications by the end of August and is calling for an extension to the scheme beyond its current end date of 30 September.
The rural peer-to-peer business lender was accredited to deliver the 80 per cent government guaranteed emergency loan scheme for small- and medium-sized enterprises (SMEs) at the start of July.
Since then, it has been preparing to deliver CBILS by getting the required institutional funding in place. It said the British Business Bank has completed its due diligence of the platform but is now conducting an audit of the lender to review its processes. Folk2Folk said it will hopefully start accepting applications by the end of August. It plans to serve existing customers first, before opening up to new borrowers.
The platform has an initial target to lend £10m in CBILS loans before the scheme is due to end on 30 September. “It’s been quite an intensive period and will continue to be until we launch the scheme,” Roy Warren, managing director of Folk2Folk, told Peer2Peer Finance News. “We’re confident everything will be in place.
“There’s been comments that the scheme may extend, it’s quite likely. Having gone through an extensive process we can move the money quickly. “If the scheme is not extended the benefit to SMEs will be much less if we can’t deliver all of the funds.”