Challenger banks Atom and Metro are the latest lenders to be accredited to the recovery loan scheme (RLS), with peer-to-peer lending platforms still conspicuously absent from the list.
The RLS is a government-backed business loan scheme that launched on 6 April, replacing the coronavirus business interruption loan scheme (CBILS), the bounce back loan scheme and the coronavirus large business interruption loan scheme.
There are now 25 accredited lenders listed on the British Business Bank’s (BBB) website for the RLS, including the biggest high street banks and some challenger banks such as OakNorth.
The BBB has invited all lenders that took part under CBILS to apply for accreditation under the RLS.
A number of P2P firms including Funding Circle and Assetz Capital were accredited for CBILS and have indicated that they are expecting to participate in the RLS.
The BBB recently responded to criticism of the scheme’s slow roll-out and said, unlike CBILS, it will only announce lenders it has accredited under the RLS once they are able to start lending under the scheme.
A BBB spokesperson said on Monday that 62 lenders have been accredited under the RLS, but those which are not yet able to lend under the scheme are in the process of signing legal documentation, onboarding and setting up systems for delivery.
“The Bank is reviewing applications from a wide range of lender types – from PRA-regulated banks, to platform lenders, debt funds, invoice finance lenders, asset finance lenders and responsible finance lenders, and we expect to announce that further lenders have been accredited in the coming days and weeks,” the spokesperson added.