The British Business Bank (BBB) has accredited another lender to the recovery loan scheme (RLS) while peer-to-peer lending platforms are still waiting to be approved for it.
Close Brothers has become the latest name to be approved under the scheme. A spokesperson from the development bank said that the lender will be providing term loans under the RLS.
The BBB expects another lender to be added either today or tomorrow.
Last week, the BBB accredited Investec, Cynergy Bank, Atom and Metro Bank to the RLS.
There are now 28 accredited lenders listed on the BBB’s website for the RLS, including high street banks and some challenger banks.
The BBB has invited all lenders that took part under CBILS to apply for accreditation under the RLS.
A number of P2P platforms including Funding Circle and Assetz Capital were accredited for CBILS and have indicated that they are expecting to participate in the RLS.
Read more: Recovery loan scheme ‘off to a slow start’
Stuart Law, chief executive of Assetz Capital, has previously told Peer2Peer Finance News that his P2P lending platform “certainly expects and hopes to be accredited very shortly”.
And when the scheme was launched, Lisa Jacobs, Europe managing director at Funding Circle, welcomed the scheme and said the P2P business lender looks forward to taking part in it.
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.
The RLS is a state-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.
The scheme, which can be used for any legitimate business reason and has have a maximum facility of £10m, provides loans from £1,000 for asset and invoice finance and from £25,001 for term loans and overdrafts.