NatWest launches new subsidized loan to help SMEs go green – London Business News

NatWest today announced the launch of green loans and, through Lombard, green asset financing proposals for eligible SMEs, with no set-up fees, to help them achieve their sustainability ambitions. .

Following the announcement of the bank’s ambition to provide £100bn of finance and climate and sustainable finance to its clients by the end of 2025, green lending and green asset finance is expected to be open for applications from February 18, 2022. Together, these proposals aim to help eligible SMEs finance business assets to support their sustainability ambitions, such as solar panels, electric vehicles or pumps heating on commercial buildings that fall under the eligible list drawn up by the bank on an ongoing basis.

Clients do not need to be existing NatWest clients to apply, and the Green Loan proposition will be available on the NatWest, Royal Bank of Scotland and Ulster Bank NI brands, while Green Asset Finance will be available through the Lombard brand.

The new proposals are designed to open up opportunities for sustainable growth options for eligible SMEs and reflect the societal benefits of climate action. To apply, eligible SMEs will work directly with a NatWest or Lombard relationship manager to discuss their needs and verify their eligibility.

Announcement follows release of NatWest’s A Springboard to Sustainable Recovery report[1] last October, which revealed that the UK’s six million SMEs can meet 50% of the UK’s Net Zero decarbonisation targets, worth an estimated £160 billion. However, the report found that less than 10% of SMEs currently see climate action as a source of future growth, and SMEs lack access to support through finance, knowledge and training.

The new proposals will be open to applications from eligible SMEs wishing to acquire assets falling within the eligible list drawn up by the bank from time to time, relating to:

  • Clean buildings: building renovations and low-carbon heating measures
  • Clean energy: renewable energy generation and storage systems
  • Clean transport: electric vehicles
  • Agriculture: renewable technologies, crops, livestock, forest respiration and conservation, marine and low-emissions management

Financing of green assets

Lombard, as part of NatWest Group, is a specialist provider of asset finance across multiple industries and has been financing sustainable assets for many years. Its new Green Asset Finance *** proposal has no arrangement fee and aims to increase the choices available to UK businesses by supporting their investment in sustainability with a wider range of financing options .

Asset financing offers companies an efficient way to finance a wide range of business assets, including assets that customers use to make their businesses more sustainable and electric vehicles. Asset financing offers companies a way to spread the costs of an asset over the period that they will use it.

Lombard Vehicle Solutions, our contract leasing solution provided by ALD Automotive, also allows customers to flexibly lease new electric and hybrid vehicles with the additional services they need to meet their needs.

Paul Thwaite, CEO of Commercial Banking, NatWest Group, said: “Climate change is one of the biggest global challenges we face today, and SMEs have a vital role to play in helping the UK achieve its green ambition. The reality is that even if SMEs want to help by reducing emissions, they face many obstacles, such as limited access to information, financing and training.

“We are working to remove these barriers through concrete action – offering incentives, such as loans and asset finance, that aim to support sustainability ambitions and benefit companies, whether they do business with NatWest or not.”

“Today we are announcing our ambition to support small businesses across the UK to help them reduce their emissions and explore the opportunities that a shift to a green economy offers us all. We cannot underestimate the power of small changes to have a big impact.

About Robert Pierson

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