Bounce Back 'CBILS' Loans...Possibly Good News For P2P! (AC)
May 2, 2020 18:47:56 GMT
markg likes this
Post by markymark on May 2, 2020 18:47:56 GMT
Email from JustUs p2p provider today, which i assume should benefit all FCA regulated p2p providers (See Below)....
Late last night, the Chancellor published a letter regarding the Bounce Back Loan Scheme which is due to go live Monday morning at 9.00 a.m. The 100% Government Guarantee Loan scheme is being rolled out initially via the banks, interest free for 1 year and 2.5% interest then thereafter.
What does this news mean?
A change in the law, under Coronavirus emergency legislation, now enables the FCA activity of Covid-19 loan creation and debt administration for banks and electronic P2P lending platforms like JustUs. With our existing FCA permissions, and this new law, we can now distribute Bounce Back Loans digitally and at scale, with very little red-tape.
Why is this only being done now?
One of the major reasons sub £25,000 emergency loans have not been getting to those who need it most, is an outdated piece of legislation called the Consumer Credit Act (CCA) 1974. 1974 is the year the act came into law and loans under £25,000 for sole traders fall into this archaic legal framework. Banks would have been deemed to be lending Covid-19 bounce back loans irresponsibly, without the legal exemption introduced last night.
Can the Covid-19 loans now be distributed at scale and fast?
Yes.
As a Peer to Peer digital loans platform, JustUs are exempt from much of the CCA red tape, enabling People to lend to other People via the internet, no branches or paper forms, Just Us all lending to each other via a website or App. JustUs is authorised by the Financial Conduct Authority to issue loans, administer debt, handle client money and take deposits. This is scalable British innovation and regulation at it's best.
JustUs FCA Permissions;
"Operating an electronic platform in relation to lending"
"Client Money"
We had the same CCA red-tape challenges as the Banks with regards to CBILS & Bounce Back Loans. I highlighted this to the British Business Bank last week in regards to our accreditation application with them, which is why I was so pleased to read that electronic lending platforms such ourselves, have been given the same legal CCA exemptions granted to the banks last night.
What next?
I have a meeting planned this coming week with the British Business Bank accreditation team, now we have the legal framework, regulatory sign off and proven technology.
Now the hard work has been done, we now just need to let the capital flow directly via a Bank of England funding for lending scheme.
Many thanks to the near 2,500 of you that have signed the petition and if you have yet to do so please spare a few moments for the unserved by clicking here
Kindest regards.
*************
Founder and CEO
Late last night, the Chancellor published a letter regarding the Bounce Back Loan Scheme which is due to go live Monday morning at 9.00 a.m. The 100% Government Guarantee Loan scheme is being rolled out initially via the banks, interest free for 1 year and 2.5% interest then thereafter.
What does this news mean?
A change in the law, under Coronavirus emergency legislation, now enables the FCA activity of Covid-19 loan creation and debt administration for banks and electronic P2P lending platforms like JustUs. With our existing FCA permissions, and this new law, we can now distribute Bounce Back Loans digitally and at scale, with very little red-tape.
Why is this only being done now?
One of the major reasons sub £25,000 emergency loans have not been getting to those who need it most, is an outdated piece of legislation called the Consumer Credit Act (CCA) 1974. 1974 is the year the act came into law and loans under £25,000 for sole traders fall into this archaic legal framework. Banks would have been deemed to be lending Covid-19 bounce back loans irresponsibly, without the legal exemption introduced last night.
Can the Covid-19 loans now be distributed at scale and fast?
Yes.
As a Peer to Peer digital loans platform, JustUs are exempt from much of the CCA red tape, enabling People to lend to other People via the internet, no branches or paper forms, Just Us all lending to each other via a website or App. JustUs is authorised by the Financial Conduct Authority to issue loans, administer debt, handle client money and take deposits. This is scalable British innovation and regulation at it's best.
JustUs FCA Permissions;
"Operating an electronic platform in relation to lending"
"Client Money"
We had the same CCA red-tape challenges as the Banks with regards to CBILS & Bounce Back Loans. I highlighted this to the British Business Bank last week in regards to our accreditation application with them, which is why I was so pleased to read that electronic lending platforms such ourselves, have been given the same legal CCA exemptions granted to the banks last night.
What next?
I have a meeting planned this coming week with the British Business Bank accreditation team, now we have the legal framework, regulatory sign off and proven technology.
Now the hard work has been done, we now just need to let the capital flow directly via a Bank of England funding for lending scheme.
Many thanks to the near 2,500 of you that have signed the petition and if you have yet to do so please spare a few moments for the unserved by clicking here
Kindest regards.
*************
Founder and CEO
