Atom, a UK app-based bank, has been approved by the British Business Bank as a lending institution under the new Growth Guarantee Scheme.
The GGS is the successor to the Recovery Loan Scheme, which was designed to help UK small businesses access finance.
The GGS was launched in July this year and will run until 31 March 2026. It will be administered by the British Business Bank and is expected to support around 11,000 businesses, offering lenders a 70% government-backed guarantee on loans of up to £2 million.
Atom is one of the largest lenders through the RLS scheme, having provided more than £235 million in funding to date.
Prior to receiving accreditation, Atom made a series of changes to its commercial mortgage proposition to enable the bank to support an even wider range of UK businesses.
The maximum LTV for large commercial mortgages has been increased, meaning mortgages up to £5 million can now be obtained at LTVs up to 75% of market value, and interest rates across the range have been reduced by up to 0.68%. All loans between £2 million and £4 million will receive a further discount of 0.25%.
Brokers can instruct a valuation at any time up until the issuance of an Approval in Principle, reducing the time from offer to completion by up to seven weeks.
Tom Renwick, head of corporate lending at Atom Bank, said: “Atom Bank has been a proud participant in previous lending schemes, providing significant amounts of capital initially to businesses looking to recover from the pandemic and more recently to businesses looking to invest and grow.”
“This commitment is further demonstrated by our recent enhancements to standards and policies, including increasing the maximum LTV on larger loans and reducing interest rates on commercial mortgages. Atom Bank is committed to championing the needs of small businesses and ensuring they continue to have the capital they need to achieve their goals.”
