We’re very much trying to!
Bounce Back Loans are 100% guaranteed by the Government but not funded by the Government. ‘Guaranteed’ means that if the lender doesn’t collect the loan, the Government reimburses the lender.
Because the Government doesn’t provide the money we need to loan to small businesses as Bounce Back Loans, we have to raise the money elsewhere.
Since we became accredited in May, we’ve been negotiating with many financial institutions. The design of the scheme means that we haven’t been able to secure funding.
On 7 July, we decided to pause lending. We’re devastated, and we hope the Government will soon change the design of the scheme to grant us direct access to funding to loan to our members as Bounce Back Loans. You can read more about what we’re doing in this letter from our CEO.