Barclays launches largest ever loan cashback scheme to boost UK SME investment
Barclays has today announced the launch of a new cashback scheme for term loans to eligible SME borrowers in the UK.
Supported by a £450 million ENABLE guarantee from the British Business Bank, this scheme is the largest of its kind to launch in the UK.
The British Business Bank’s ENABLE Guarantee programme helps banks to increase their lending to smaller businesses by reducing the amount of capital required to be held against such lending1.
One of the key benefits of the ENABLE programme for customers is that Barclays will offer qualifying SMEs cashback on eligible lending, with the intention of supporting SME growth in the UK.
Through this scheme, £450m has been made available to enable more SME term lending which meets the eligibility criteria, with companies benefiting from 0.25% cashback on eligible loans2. Businesses with up to 250 employees and a turnover of up to £43m are eligible to apply.
Tasnim Ghiawadwala, head of UK Corporate Banking, Barclays, said: “Today’s funding announcement from Barclays further demonstrates our commitment to businesses across the UK who represent the core of our economy.
“As one of the initiatives from Barclays’ £14bn lending fund in support of SMEs, we’re offering practical and attractive ways for firms to access the capital they need to help them grow and prosper and at the same time, we have been able to further strengthen our partnership with the British Business Bank.”
Keith Morgan, CEO, British Business Bank, added: “Term loans are an essential part of the finance landscape for smaller UK businesses, enabling them to make larger longer-term purchases of business assets such as computers, plant and machinery, and vehicles. We are pleased to be working with Barclays to help businesses access the finance they need to grow and thrive.”
Kelly Tolhurst, small business minister, said: “This is a fantastic initiative from Barclays and the British Business Bank. I would encourage other lenders to take advantage of the guarantees for lending on offer from the government-owned British Business Bank, so we can work together to help our brilliant businesses unleash their potential.”