UK digital-only bank Atom is set to ramp up its small business lending after securing a £30 million Tier 2 capital facility from the state-backed British Business Bank.
The facility, made through British Business Bank Investments Ltd, is designed to help Atom meet capital requirements to secure lending, enabling it to lend out more money to SMEs.
Anthony Thomson, chairman, Atom, says: "Access to Tier 2 capital at such an early stage of the growth cycle is rare and we are extremely pleased to be gaining this support from British Business Bank Investments.
"Together with the British Business Bank, we are sending a clear sign - we are here to support UK SMEs."
Atom received its banking license in June 2015 and launched operations in April 2016, offering two fixed-saver accounts and secured business lending for SMEs.
Recently the challenger raised £83 million but was forced to put plans to offer current accounts on ice as it faces up to a slew of new regulations over the next year.