Atom Bank accredited to new Recovery Loan Scheme
Atom Bank has been accredited to the latest iteration of the Recovery Loan Scheme (RLS).
Atom, which claims to be the UK’s first app-based bank, will offer secured loans from £250,000 up to £2m, via its network of more than 200 independent brokers across the UK. It is set to start accepting applications soon.
Atom was accredited to the original version of the RLS, in which it received more than £550m of applications.
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An updated version of the RLS was unveiled last month. Unlike the original government-backed loan scheme, launched in 2021, the updated scheme encourages lenders to obtain a personal guarantee on loans. The government underwrites 70 per cent of the value of each loan, compared to 80 per cent under the original version of the scheme.
And borrowers are no longer required to confirm they have been affected by Covid-19.
The new accreditation comes as Atom voluntarily committed to the Lending Standards Board’s (LSB) Standards of Lending Practice for business customers last month.
Read more: Two more lenders join new RLS
“Atom has always been fiercely passionate about supporting small businesses and helping them achieve their potential through fair and responsible lending,” said Chris Storey, commercial director at Atom bank.
“Having played an important part of both the coronavirus business interruption loan scheme and then RLS scheme for UK businesses, offering new-to-bank and existing customers access to much needed capital, we look forward to welcoming new customers and supporting our rapidly growing group of existing customers with secured RLS loans.”
“We move into the latest iteration of RLS as a registered firm with the Lending Standards Board. This is the latest commitment we have made beyond our regulatory obligations to driving fair outcomes for SMEs and always placing the customer at the heart of everything we do.”
Atom recently grew its book to more than £1bn (up 45 per cent since its 2021 financial year) and in doing so, delivered its thousandth secured business loan.
Read more: Details of updated Recovery Loan Scheme revealed