We are listening and reading all your comments and questions. To answer the ones we have received the most over the past few days, we have published a new blog post here 1.
From this post I wanted to highlight a few points to answer your questions.
@markdicker, The Bounce Back Loan Scheme is a Government initiative open to all eligible small businesses . We believe it isn’t fair to discriminate against new customers so that’s why any small business owner can still apply for an account with us, and if they wish, register their interest in getting a Tide Bounce Back Loan.
That said, almost 90% of the businesses on our waiting list are existing rather than new members.
I also wanted to confirm that this week – the first week of June, three weeks since our accreditation to deliver Bounce Back Loans – Oliver, our CEO, will write to all members again with an update on our lending. We’ll continue to write these updates regularly.
@Jtreacher, I wanted to point you towards 2 FAQs on that post:
When will I get a loan from Tide? I need a loan right now.
We want to let you know exactly when you can expect to get a Bounce Back Loan from us. So far we haven’t been able to predict dates because offering these loans is completely new to us and there are many variables. Instead of disappointing you, we asked you to wait.
We know you need more certainty, but as with all other lenders, getting a Bounce Back Loan depends on a number of factors. These include:
- Government rules on eligibility
- checks including anti-fraud and Know Your Customer (KYC)
- limits on lending set by the British Business Bank
- raising money to finance the loans
When you look at this process as a whole, it isn’t as simple as flicking a switch. The Tide team is working round the clock to align these factors to offer loans to as many of you as possible, as fast as possible.
Because of these factors, we can’t guarantee that we’ll be able to offer a Bounce Back Loan to everyone on our waiting list. We stated this on the webpage where you registered your interest.
If you need a loan and can’t wait, you can also apply or join waiting lists with other lenders. This is because you don’t ‘apply’ for a Bounce Back Loan with Tide, you join our waiting list. (Remember, you can only have one Bounce Back Loan.)
How is Tide funding these Bounce Back loans? Isn’t it Government money?
The Bounce Back Loan Scheme is 100% guaranteed by the Government. ‘Guaranteed’ means that if the lender doesn’t collect the loan, then the Government has to reimburse the lender. It doesn’t mean the money is given to lenders by the Government.
All loans that we provide through the Bounce Back Loan Scheme are funded by Tide and not the Government. This means we have to raise the money we lend through the Bounce Back Loan Scheme. Then we lend it to members, up to a limit set by the British Business Bank.
Because the Government guarantees the loans, they need to have control over how much all accredited lenders are lending. When we reach our lending limit, we re-apply to the British Business Bank for an increase so we can continue lending.
@Dominicmccree, The waiting list works like a queue, everyone who registers is listed in the order you signed up. We’re working hard to get through the list as fast as we can and we’ll contact you when you can access a Bounce Back Loan. We’ll also let you know if you’re not eligible.
We’re building an online tracker so you’ll be able to easily review your status. We need to build and test this tracker system and we hope it will be live before mid June.
I hope this will answer all your questions.
Thanks for your patience,