Atom bank achieves Growth Guarantee Scheme accreditation
08 July 2024
• The Growth Guarantee Scheme is the successor to Recovery Loan Scheme (RLS)
• Atom bank has been an active participant in both the RLS and its predecessor schemes
• Accreditation demonstrates Atom bank’s commitment to supporting small businesses
Atom bank, the UK’s first app-based bank, has been accredited as a lender by the British Business Bank under the new Growth Guarantee Scheme.
The Growth Guarantee Scheme is the successor to the Recovery Loan Scheme (RLS), which was designed to support access to finance for small and medium-sized businesses in the UK to help them grow and succeed.
The Growth Guarantee Scheme runs from 1st July 2024 until 31st March 2026. It is administered by the British Business Bank and is expected to support around 11,000 businesses, with lenders provided with a 70% government-backed guarantee on facilities of up to £2m.
Accreditation for the scheme demonstrates Atom bank’s commitment to championing the nation’s small businesses. The bank was a proud participant in both the Recovery Loan Scheme and its predecessor the Coronavirus Business Interruption Loan Scheme (CBILS).
Atom bank has been one of the biggest lenders through the RLS scheme, providing funding of more than £235m to date.
Indicative pricing for the Growth Guarantee Scheme:
LTV Fixed Variable
50% 6.41% Base Rate + 2.48%
60% 6.78% Base Rate + 2.78%
70% 7.21% Base Rate + 3.1%
Supporting small businesses
Prior to accreditation, Atom bank had made a suite of changes to its commercial mortgage proposition, allowing the bank to support an even wider range of British businesses.
The maximum loan-to-value (LTV) on large commercial mortgages was increased so that mortgages of up to £5m can now be obtained at up to 75% LTV against the market valuation, while rates across the range have been reduced by up to 0.68%. A further 0.25% discount is available on all loans between £2m and £4m.
Alongside competitive pricing, Atom bank introduced a range of processing improvements which deliver a better experience for commercial customers. These have slashed the time between application and the issuing of an agreement in principle (AIP) by 94%, meaning that AIPs are now typically delivered on the same day, while the typical elapsed time between application and offer has been cut by 61%. As a result, the current time from agreement in principle being accepted to an offer being issued is under 10 working days on average.
Intermediaries can also instruct a valuation at any point up to the issuing of an approval in principle, which can slash the time from offer to completion by up to seven weeks.
Tom Renwick, Head of Business Lending at Atom bank commented:
“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. 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.”
