The banking and finance industry has approved some £47.9 billion in loans to over 1.1 million businesses so far through the government-backed coronavirus lending schemes, figures released by HM Treasury reveal today.
But this is not the end as the Bounce Back Loan Scheme (BBLS) continues to provide new support to thousands of small and micro businesses every day, with 1.08 million businesses having received a total of £32.8 billion. The figures show that lenders have approved a further £12.2 billion worth of facilities to 55,700 companies adversely affected by Covid-19 via the Coronavirus Business Interruption Loan Scheme (CBILS).
And the figures also show that the Coronavirus Large Business Interruption Loan Scheme (CBILS) – aimed at larger enterprises – has seen £2.9 billion in loan approvals to 428 businesses.
Responding to the latest HM Treasury figures on Covid-19 support for businesses, Managing Director of Commercial Finance at UK Finance, Stephen Pegge, said:
‘As the economy begins to re-open, the banking and finance industry stands ready to support businesses through these challenging times.
‘Almost £48 billion has been approved to more than 1.1 million businesses through the government-backed lending schemes, helping to improve their cash flow and adapt to the new economic environment.
‘This support is just one part of the industry’s wider plan to help businesses in the UK, including commercial lending, capital repayment holidays, extended overdrafts and asset-based finance.
‘It is important to remember that any lending provided under government-backed schemes is a debt not a grant, and so firms should carefully consider their ability to repay before applying.’
Just one example was mobile and at-home food retail manufacturer, Huey Group received a loan worth £45,000 from Lloyds via the CBIL scheme. The Pudsey-based manufacturer, which makes pizza ovens, grills and BBQs, used the loan to pivot from manufacturing mobile food solutions to producing more at-home BBQ grills and pizza ovens to meet demand.
