Fintechs warn the government’s SME loan scheme will fail. Announced just days ago by Chancellor Rishi Sunak, members of the fintech community including Tide and Iwoca are already urging a rethink.
“I have written to the government today to outline that the Coronavirus Business Interruption Loan Scheme, accessible via the British Business Bank, has a worrying lack of reach,” said Tide CEO Oliver Prill.
In The TimesIwoca’s CEO Christoph Rieche said: “The fintech community has not been taken advantage of yet. Hundreds of thousands of businesses need cash, and delivering that is not a trivial exercise.”
Part of their concern is that the 40 lenders listed on the British Business Bank’s Enterprise Finance Guarantee scheme don’t have the reach to serve all the UK SMEs in need.
https://www.altfi.com/article/6327_covid-19-fintech-watch-fintechs-warn-government-sme-loans-will-fail-more-us-bank-branches-close-bank-of-england-cancels-stress-test