Innovate Finance statement on CBILS changes

Charlotte Crosswell, CEO of Innovate Finance, commented:

“We welcome the measures taken by the Chancellor to revamp the emergency loans scheme for SMEs – many of which are struggling to survive amid the coronavirus pandemic. While these were necessary steps to advance the process and get loans to businesses faster, we remain concerned about the speed of distribution, particularly with next month's payroll deadlines looming for many firms.

“At Innovate Finance, we have been urging the Government to expand the list of accredited firms, to take advantage of the quick decision and distribution methods offered by FinTech lenders. This would provide more specialised support for small and micro businesses, and deploy the FinTech sector to its full effect.

“Since CBILS was launched there have been more than 130,000 loan enquiries, but fewer than 1,000 had been approved. The incumbent lending system was not designed with such a high demand in mind, and new avenues need to be explored. We should now explore how collaboration between government, banks and Fintech firms can expedite analysis and distribution.

“Time is of the essence, and technology can help here – we have a full cohort of innovative FinTech lenders that need accreditation, and fast. With their support, more businesses can get help in the short term.”