Sponsored by NatWest
Customers do not need to be existing NatWest customers to apply, and the green loan proposition will be available across NatWest, Royal Bank of Scotland, and Ulster Bank NI brands, whilst the Green Asset Finance will be available through Lombard with no arrangement fee for qualifying SMEs.
Following the announcement of the bank's ambition to provide £100bn of Climate and Sustainable Funding and Financing to customers by the end of 2025, green loans and green asset finance opened for applications from 18 February 2022. Together, these propositions aim to help qualifying SMEs finance the business assets to support their sustainability ambitions, such as solar panels, electric vehicles, or heat pumps on commercial buildings that fall within the eligible list developed by the bank on an ongoing basis.
The new propositions are designed to open up opportunities for sustainable growth options for qualifying SMEs and reflect the societal benefit of delivering climate action. To apply, qualifying SMEs will work directly with a NatWest or Lombard Relationship Manager to discuss their needs and check their eligibility.
The announcement follows the publication of NatWest's A Springboard to Sustainable Recovery report last October, which found that the UK's six million SMEs can achieve 50% of the UK's Net Zero decarbonisation goals worth an estimated £160 billion revenue opportunity. However, the report found that less than 10% of SMEs currently see climate action as a source of future growth, and that SMEs lack access to support through funding, knowledge and training.
The new propositions will be open to applications from qualifying SMEs who want to acquire assets that fall within the eligible list developed by the bank from time to time, relating to:
● Clean buildings: retrofits for buildings and low carbon heating measures
● Clean energy: renewable energy generation and energy storage systems
● Clean transport: electric vehicles
●Agriculture: renewable technology, crops, livestock, forest respiration and conservation, marine and low emission management
Green Asset Finance
Lombard, as part of NatWest Group, is a specialist provider of asset finance across multiple business sectors and has been financing sustainability assets for many years. Its new Green Asset Finance proposition has no arrangement fee, and aims to increase choices available to UK businesses by supporting their investment in sustainability with a wider range of financing options.
Asset finance provides businesses with 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 finance provides businesses with a way to spread the costs of an asset over the period they will use it.
Lombard Vehicle Solutions, our Contract Hire solution provided through ALD Automotive, also enables 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 critical role to play in helping the UK realise its green ambition. The reality is that while SMEs want to help by reducing emissions, they face many barriers doing so such as limited access to information, funding and training."
"We're working to remove these barriers with concrete actions - providing incentives, such as loans and asset financing that aim to support sustainability ambitions, and aim to benefit businesses whether they bank with NatWest or not."
"Today we're announcing our ambition to stand by small businesses of the UK to help them reduce emissions and explore the opportunities that a move towards a green economy brings for us all. We cannot underestimate the power of small changes to make a big impact."
Climate Hub - aiming to help SMEs go and grow greener
Information on how to apply for a green loan or green asset financing is available on the NatWest Climate Hub. The new Climate Hub features tips, insights and tools aiming to help all UK SMEs act now to tackle climate change, by reducing emissions and unlocking green growth opportunities.
The Climate Hub brings together resources, products and services that address some of the gaps identified in NatWest's A Springboard to Sustainability report, as well as educating SMEs around the financial benefits of transitioning towards Net Zero.
Visitors to the Climate Hub will also have free access to:
● Information on the pilot of our carbon tracker app, developed in partnership with Cogo, which launched February 2022 with up to 500 SMEs in the manufacturing and transport sectors. The app is designed specifically for SMEs to give an estimate of, and help them understand, their carbon footprint and provide suggestions as to how SMEs may be able to reduce it.
● Details of the new green loan for SME businesses announced today, and green asset financing solutions to support SME customers in their transition journeys.
● Information on NatWest's six specialist Accelerators connecting SMEs with regional centres of excellence to support SMEs to identify the biggest opportunities for their business.
Customers can find out more at www.natwest.com/climatehub
Green loans for qualifying SMEs are subject to the terms of a loan agreement, including that the loan must only be used for the applicable eligible purpose.
Green Asset Finance for qualifying SMEs is subject to the terms of the finance agreement, including that the underlying asset must fall within the eligible asset list.
Green Loans with no arrangement fee are open to applications from eligible UK businesses with an annual turnover of less than £25m (other than for eligible UK Real Estate Finance businesses for whom alternative eligibility criteria may apply) who are seeking to take out a loan to acquire assets that fall within the eligible list developed by the bank and subject to review and change on an ongoing basis. Security may be required. Fees (other than arrangement fees) may apply. Over 18s only. Subject to status, eligibility and approval. Business use only. Any property or asset used as security may be repossessed or forfeited if you do not keep up repayments on any debt secured on it. Failure to comply with the terms of the loan agreement could lead to an event of default under the loan and (depending on their terms) may also impact other facilities of the borrower. Terms apply.
