OakNorth Bank – the UK bank powered by OakNorth – has approved £1.1bn in new loans since 23 March to support UK businesses through COVID-19, including over £400m through the Coronavirus Business Interruption Loan Scheme (CBILS) and the Coronavirus Large Business Interruption Loan Scheme (CLBILS).
From June to August, OakNorth Bank experienced twice the lending volume going to credit committee compared to the same period last year, and in the last month, has seen four times the volume.
Despite the difficulties the UK economy and British businesses have faced due to the pandemic, OakNorth Bank has continued to support viable businesses and strong management teams, including: a loan-on-loan facility to Ultimate Finance to support growth in bridging lending; a loan to The Jade Hotel in South Kensington to support expansion and renovations; a loan to Red Oak Taverns to assist with working capital requirements and contractual obligations; a loan to Dewing Properties to release liquidity to the wider business; and the completion of its first fund finance subscription facility to Bluegem Capital Partners, a PE firm focused on European consumer-facing businesses.
Ben Barbanel, Head of Debt Finance at OakNorth Bank, said: “At the start of the pandemic, we made a commitment to continue supporting experienced management teams and viable British businesses. As part of that commitment, we’ve approved over £1bn in new loans, held more than 325 credit committees and are currently seeing four times the lending volume going to credit committee vs the same period last year. We have also been active participants in the British Business Bank’s CBILS and CLBILS, so are glad that the schemes have been extended and that we’ve been granted an additional allocation.”
Notes to editors
About the Coronavirus Business Interruption Loan Scheme (CBILS)
CBILS is a demand-led scheme offering lending to smaller businesses with turnover of up to £45m. Invoice finance and asset finance facilities are available from £1k to £5m, while term loans and revolving credit facilities are available from £50k to £5m. The government makes a payment to cover interest and lender-levied fees under CBILS for the first 12 months. The scheme is due to close for new applications on 31 January 2021.
The Coronavirus Large Business Interruption Loan Scheme (CLBILS) is managed by the British Business Bank on behalf of, and with the financial backing of the Secretary of State for Business, Energy and industrial Strategy (BEIS).
About OakNorth Bank plc
OakNorth Bank provides fast, flexible and accessible debt finance (from £500k to £50m) to fast-growth businesses and established property developers / investors. It has debt finance teams in London, Manchester, Bristol, Birmingham, Leeds and East Anglia.
Since its launch, the bank has:
• Lent over £4.6bn, directly helping with the creation of almost 16,000 new homes and more than 20,000 new jobs in the UK;
• Raised deposits from c.160,000 savers;
• Supported over 750 businesses across the UK with the debt finance to pursue their growth ambitions.
It is authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority.
Visit www.oaknorth.co.uk for more information.