FLA secures access to the Coronavirus Business Interruption Loan Scheme for financial services firms

The Finance & Leasing Association (FLA) has secured access for independent and non-bank lenders to the Coronavirus Business Interruption Loan Scheme (CBIL), allowing them to continue to run their business, support existing customers’ requests for forbearance, and to continue lending to new customers.

Gaining access to CBILS funding means that many more firms can be helped to bridge the immediate challenges presented by the Coronavirus shutdown, and emerge ready to do business.    

Simon Goldie, Head of Asset Finance at the FLA said:

 “We have been very clear in discussions with Government that the right mix of funding will penetrate further into the economy, delivering more support for a broader selection of businesses and individuals, so it is good to see that the British Business Bank agrees with us. 

 “We have also argued that the accreditation process needs to be as quick as possible, so if a funder is regulated by the PRA or FCA, this should be taken into account. We have been assured by the BBB that they are doing everything they can to speed up the accreditation process.”

 However, it remains a concern that both the Term Funding for SMEs (TFSME)and the Covid-19 Corporate Financing Facility (CCFF) are currently inaccessible to FLA independent and non-bank funders; the TFSME does not cover non-bank lenders, and the CCFF facility is only open to non-finance businesses. FLA funders play a critical role in providing finance to businesses and households in the UK, and we would urge the Government to harness this capacity within their schemes. 

Notes to Editors

1. When the Government announced the (CBILS), the FLA recommended a series of changes to make CBILS work for members.
2. We asked the British Business Bank (BBB) to allow financial services firms to access the scheme as users. The BBB has now agreed to this.
   “Deposit taking banks and insurers writing in insurance as principal are not eligible for CBILS.  Other financial services firms are in principle eligible.  For example, FCA regulated financial intermediaries (e.g. credit brokers, finance houses, equipment renting/leasing businesses, financial intermediation firms); and firms that offer independent advice/services on financial matters (e.g. accountants, auditors, mortgage brokers) may be eligible provided that they satisfy the other eligibility criteria of the Scheme.
3. In 2019, FLA members provided £140.3 billion of new finance to UK businesses and households. £104.7 billion of this was in the form of consumer credit representing over a third of total new consumer credit written in the UK in 2019. £35.7 billion of finance was provided to businesses and the public sector. FLA members financed more than a third of UK investment in machinery, equipment and purchased software in the UK in 2019.
4. For media enquiries, please contact the FLA press office on 020 7420 9656.