All loans that we provided through the Bounce Back Loan Scheme were funded by us and not the Government. This means we had to raise the money we lent through the Bounce Back Loan Scheme.
The Bounce Back Loan Scheme is 100% guaranteed by the Government. ‘Guaranteed’ means that if the lender doesn’t collect the loan, then the Government has to reimburse the lender. ‘Guaranteed’ doesn’t mean the money is given to lenders by the Government.
Because the Government guarantees the loans, they need to have control over how much all accredited lenders lent to customers.
You can read more about how we tried to raise the capital to lend as Bounce Back Loans in this letter from our CEO to members.