Iwoca becomes latest recovery loan scheme lender

Iwoca is the latest lender to gain accreditation for the government-backed recovery loan scheme (RLS).

The alternative lender, which provided almost £400m of coronavirus business interruption loans, has been approved by the British Business Bank to take part in the successor emergency lending initiative.

The scheme, which launched on 6 April, has a £10m maximum limit per business or £30m per group and aims to support small- and medium-sized enterprises (SMEs) that have a viable business proposition and were hit by the Covid-19 crisis.

Iwoca made up 10 per cent of total CBILS approvals and said it is looking forward to providing more support.

Read more: Iwoca named among fastest growing companies

“We’re proud that we could support small businesses through the toughest of times,” Christoph Rieche (pictured), chief executive of Iwoca, said.

“As the recovery starts to get into full swing, businesses will now need more funding to take full advantage of the opportunities ahead.”

It comes as the Treasury is reported to be considering extending the RLS past its 31 December deadline.

Officials are reportedly set to talk with banks over the next month to decide whether to continue the scheme and whether to adjust the terms.

Potential options including reducing the government guarantee to cut down on potential losses that taxpayers could suffer from unpaid debt.

A Whitehall source cited by The Daily Telegraph said the scheme’s future is being discussed ahead of the Budget this month, but a decision by ministers could arrive later.