Barclays launches loan cashback scheme to boost UK SME investment
Barclays Corporate Banking has launched 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.
Barclays’ SME targeted loan scheme is believed to be the largest of its kind to launch in the UK.
The ENABLE Guarantee programme helps banks to increase their lending to smaller businesses by reducing the amount of capital required to be held against such lending.
According to Barclays, 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, £450 million has been made available to enable more SME term lending which meets the eligibility criteria, with companies benefiting from 0.25 per cent cashback on eligible loans. Businesses with up to 250 employees and a turnover of up to £43 million are eligible to apply.
Commending the bank on its initiative, Small Business Minister Kelly Tolhurst said that other lenders should follow suit.
“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,” Ms Tolhurst.
This scheme is one of the initiatives included in Barclays’ £14 billion lending fund in support of UK SMEs.