No excessive avenue financial institution accepts new bounce again mortgage functions
Although the bounce-back loan program is being extended until the end of January, no banks are open to BBL applications from new customers.
To date (November 3rd), Starling Bank is the only of 28 accredited lenders open to bounce-back loan applications from those doing banking elsewhere.
A Starling Bank spokesman said, “We currently have a waiting list and we are prioritizing established companies and sole proprietorships that use Starling as their primary account. Eligible customers will receive an email inviting them to apply. However, we cannot guarantee that everyone on the waiting list will receive a loan. “
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The all-party parliamentary group for fair business banking has found that up to 250,000 small businesses are “effectively excluded from the market” because they do not bank with accredited lenders.
Kevin Hollinrake, Conservative MP and Co-Chair of APPGFG, said, “We welcome the renewal of bounce back loans [BBLS] and the ability to recharge, but it is critical that banks are open to new business, including from new customers.
“Over the past few weeks, the few lenders who have been open to new customers have gradually closed their doors. The APPG has been advocating this issue for months and this needs to be addressed as a priority. “
Problems persist for lenders who are not approved to sell bounce-back loans that are not benefiting from Bank of England funding.
A spokesman for digital banking platform Tide said: “Tide will be on hold unless the government can fund the program directly. We’re still pushing for it. “
Recharge Bounce Back Loans
The Treasury Department announced yesterday that companies will be able to benefit from the government loan programs – including the Coronavirus Business Interruption Loan Scheme and the Future Fund – through January. That’s two months longer than November 30th.
The 1.3 million UK businesses, which have already raised £ 40.2 billion in bounce back loans since their launch in May, can top-up existing BBLs up to a maximum of 25 percent of sales (maximum) £ 50,000 if necessary ).
> See also: Microbusiness £ 50,000 Bounce Back Loans – How They Work
The top-up option will be available next week and can only be used once by businesses.
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