Funding Circle and Assetz Capital expect to take part in the new recovery loan scheme (RLS).
The British Business Bank has invited all lenders that took part under the coronavirus business interruption loan scheme (CBILS), which ends on 31 March, to take part in its successor scheme, RLS, which launches on 6 April.
The new scheme was announced by Chancellor Rishi Sunak in his 2021 Budget and has a maximum facility of £10m. It will provide loans from £1,000 for asset and invoice finance and from £25,001 for term loans and overdrafts.
Peer-to-peer lending platforms Funding Circle, Assetz Capital and LendingCrowd were all accredited to CBILS and deployed funds under the scheme.
Assetz Capital has confirmed to Peer2Peer Finance News it expects to take part in the scheme after previously announcing it expects to.
Welcoming the announcement of the scheme, Lisa Jacobs, Europe managing director at Funding Circle, said the P2P business lender looks forward to taking part in it.
“We welcome the government’s RLS, which will continue to support small- and medium-sized enterprises as we emerge from the pandemic,” she said at the time.
“We look forward to facilitating loans under the new scheme, ensuring small businesses have the finance they need to invest, create jobs and drive the economic recovery.”
A spokesperson from the British Business Bank said that it is inviting all existing CBILS lenders to participate in an accelerated accreditation process for those that satisfy the relevant criteria.
“This ensures appropriate consideration is given to potential lenders’ ability to deliver the scheme,” the spokesperson said.
“Lenders that do not satisfy the required criteria and any potential new lenders will need to go through the full accreditation process.
“A broad range of lenders are expected to deliver the new scheme.
“A list of accredited lenders will be available on the British Business Bank website in due course and will be kept updated as new lenders are accredited.”
David Bradley-Ward, chief executive of Ablrate, has said that he is not interested in taking part in the government’s RLS because the platform is too busy with a full pipeline.
Meanwhile, Lee Birkett, founder of P2P platform JustUs, has said that he would be interested in participating in the new scheme but it depends on the details which are yet to be revealed.
LendingCrowd has been contacted for comment.