Prime Minister’s Office
10 Downing Street
London
SW1A 2AA
06th April 2020
Dear Prime Minister, Chancellor of the Exchequer, Secretary of State for Business.
May I first of all send you our best wishes Prime Minister and hope that you get well soon.
We were optimistic when The Coronavirus Business Interruption Loan Scheme (CBILS) was first announced. The much needed cash flow from these emergency loans for small firms and the self employed would have made a huge difference to those impacted by the Coronavirus, however this funding has not materialised.
I know we should not compare, but when the Swiss have granted 100 times more loans to those who need it most, I was ashamed to be British and I feel that we are letting down the people of this country terribly. What is worse, is that we have the Great British Fintech Technology functioning in the cloud today to roll out these loans at scale, so it doesn't have to be this way.
As a proud British Fintech Platform, we have represented Britain on Fintech Trade Missions and are welcomed as technology leaders around the world. We have benefited from the EIS Scheme, R&D Tax Credits and our savers and borrowers benefit from the excellent Innovative Finance ISA introduced by The Conservatives in 2017.
Many non-bank lending platforms like ourselves, source their lender capital from private individuals and smaller businesses, not banks or hedge funds, real people using their ISA allowances and pensions to lend to other people.
The Banks are not lending and will not under the CBILS 80% Guarantee scheme currently structured. A conflict exists between Banks protecting shareholders and serving the people and businesses of the country. It's shameful the way they are currently operating in these troubling times and the people will not forget.
Unless the non-bank Fintech platforms are able to access the CBILS scheme for the people and SME's urgently, with a 100% Government guarantee, millions of jobs will be lost and a generation of innovation destroyed.
The Great British Fintech Platforms can deliver a CBILS solution now and at scale with Government in partnership with the people.
Our proposals, simplified below, are submitted via the British Business Bank and HM Treasury and we look forward to their reply.
1. A self declared application for up to 25% of 2019 revenues, to a maximum of £50,000. Available to any sole trader or SME with HMRC identification. A simple 1 page online application is all that's required. This would trigger a 1 page eSignature credit agreement. Loans could be disbursed within 24 hours from application.
2. For loans of £50,000 to £5M, An FCA Regulated Financial Adviser or Chartered Accountant can verify 2019 revenues and cashflows before COVID19 and apply for up to 25% of revenues. Once verified this would trigger a 1 page eSignature credit agreement and loans could be disbursed within 48 hours from application.
The details of this scheme have been submitted to the British Business Bank and HM Treasury.
The people of this country are willing to lend their money to other people, let's work together with "The People's Government" to make it happen and fast.
Yours sincerely,
Lee Birkett
Chief Executive Officer
JustUs.co
CC. COVID2020 Fintech Taskforce
