ThinCats has been accredited by the British Business Bank to participate in the recovery loan scheme (RLS).
The alternative lender will be providing loans to businesses ranging between £1m and £10m under the scheme, whereby the government guarantees 80 per cent of the finance to the lender.
RLS replaces the previous state-backed Covid schemes including the coronavirus business interruption loan scheme, which ThinCats was accredited for last April.
ThinCats’ RLS accreditation follows its recent announcement of a £160m investment from Kuwait-backed Wafra Capital Partners, which will help the platform lend a further £2bn to small- and medium-sized enterprises (SMEs) over the coming years.
State-backed loans can only be funded by institutional investors, not retail money.
“We are delighted to be accredited under the Recovery Loan Scheme by the British Business Bank,” said ThinCats chief executive Amany Attia (pictured).
“It comes as part of our wider work to support the funding needs of mid-sized SMEs as they invest in the UK’s post-pandemic economic recovery. The loan size and flexibility allowed under RLS will be welcomed by businesses looking to grow organically or through acquisition.
“The recent strategic investment by Wafra Capital Partners means we have significant amounts of capital to deploy for normal funding and now through RLS. We look forward to supporting many more companies over the coming months.”
A number of lenders have been accredited for RLS this week, including peer-to-peer lender Assetz Capital.