Atom bank aims to participate in stimulus loan program after coronavirus funds boost lending

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Digital bank Atom has announced that it hopes to participate in the successor to the coronavirus business disruption loan program.

Chancellor Rishi Sunak unveiled the new stimulus loan program in last week’s budget to help support businesses affected by the coronavirus pandemic.

It will replace CBILs and the Bounce Back Loan Scheme and will allow UK businesses of any size to apply for a loan or overdraft between £ 25,000 and £ 10million until the end of 2021, with the government providing lenders with an 80% of guarantee.

Now Atom, which is headquartered at Aykley Heads in Durham City, says it will apply to be an eligible lender in the new RLS.

It plans to offer competitively priced loans to new and existing clients under the program as soon as possible.

Paul Elliott, head of corporate banking at Atom, said: “The Chancellor’s announcement of the trade-in loan program is great news for businesses.

“Subject to admission into the new program, we plan to continue to be part of the response for UK SMEs by offering high value loans under the RLS through the remainder of 2021.”

The news comes as Atom – the UK’s first bank created just for mobile phones – has announced that the value of business loans on its balance sheet has tripled to over £ 700million in the past 12 years. month.

The bank – which announced last month that it was looking to raise £ 40million from existing shareholders and plans to go public within the next two years – said it had seen overwhelming interest in its guaranteed loans guaranteed by the CBIL.

Atom says it is on track to reach 100 basis points of the net interest margin (NIM) by the end of March and to break even in the second half of the year. next exercise.

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