Atom bank accredited under new growth guarantee scheme

New scheme expected to support around 11,000 businesses

Atom bank accredited under new growth guarantee scheme

Atom bank has announced that it has been accredited as a lender by the British Business Bank under the new Growth Guarantee Scheme.

The Growth Guarantee Scheme, which succeeds the Recovery Loan Scheme (RLS), is designed to support small and medium-sized businesses in the UK. Running from July 1, 2024 to March 31, 2026, the scheme is expected to support around 11,000 businesses, offering lenders a 70% government-backed guarantee on facilities up to £2 million.

The digital bank said the accreditation underscores its commitment to supporting small businesses. The bank was a significant participant in both the Recovery Loan Scheme and the Coronavirus Business Interruption Loan Scheme (CBILS), providing over £235 million in funding through the RLS.

Ahead of this accreditation, Atom bank enhanced its commercial mortgage offerings to support a broader range of British businesses. The bank increased the maximum loan-to-value (LTV) on large commercial mortgages, allowing loans up to £5 million at 75% LTV. It also reduced rates across the range by up to 0.68%, with an additional 0.25% discount on loans between £2 million and £4 million.

Atom bank has also introduced processing improvements to enhance the customer experience. These changes have reduced the time from application to agreement in principle (AIP) by 94%, enabling same-day delivery of AIPs. The typical time from application to offer has been cut by 61%, with the current average time from AIP acceptance to offer issuance being under 10 working days.

Additionally, intermediaries can now instruct a valuation at any point up to the issuing of an approval in principle, potentially reducing the time from offer to completion by up to seven weeks.

“We are delighted to have been accredited for the Growth Guarantee Scheme, in recognition of our passion and support of SMEs across the UK as they look to achieve sustainable growth,” said Tom Renwick (pictured), head of business lending at Atom bank.

“Atom bank has been a proud participant in previous schemes, offering significant levels of funding to businesses as they looked to initially recover from the pandemic, and more recently as they look to invest and grow.

“That commitment has been further demonstrated through the recent criteria and policy enhancements we have made, increasing the maximum LTV available on larger loans and reducing our commercial mortgage rates. Atom bank is determined to champion the needs of SMEs, and continue to unlock the funding they need in order to reach their ambitions.”  

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