Barclays, BBB Introduce Cashback Loans For UK SMBs

Barclays Corporate Banking is rolling out a unique term loan cashback program to eligible small to medium-sized business (SMB) borrowers in the U.K. in conjunction with a 450 million pound ($584.8 million) ENABLE guarantee from the British Business Bank (BBB), Barclays announced Tuesday (Jan. 28).

The program is the largest term loan cashback program for SMBs in the U.K. The ENABLE program offers assistance to banks looking to expand loans to SMBs by lowering the minimum capital requirements. Barclays will give cash back to SMBs that meet the requirements. The goal is to advance SMB expansion in the U.K.

Businesses with a maximum of 250 employees and a turnover of up to 43 million pounds ($55.9 million) are eligible to apply. Approved companies will get a minimum of 0.25 percent cash back on qualifying loans.

Tasnim Ghiawadwala, head of U.K. Corporate Banking at Barclays, said the bank is committed to helping U.K. SMBs, which “represent the core of our economy.” The lending fund has 14 billion pounds ($18 billion) available to SMBs, “to help them grow and prosper” while also strengthening Barclay’s relationship with the BBB.

Keith Morgan, CEO of the BBB, said U.K. SMBs need term loans “to make larger longer-term purchases of business assets” like computers and machinery. He added the BBB is happy to partner with Barclays “to help businesses access the finance they need to grow and thrive.”

Small Business Minister Kelly Tolhurst said, “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.”

In August, Barclays started offering 100,000 pounds ($130,000) unsecured lending for SMBs on its app and online banking platform.

A Barclays survey indicated 44 percent of SMBs would have more confidence in applying for a loan if they could see a pre-assessed limit. In response, Barclays offered over 360,000 customers pre-assessed limits.