Covid-19 support schemes back nearly 1.5 million businesses across the UK
HM Treasury figures reveal that nearly 1.5 million businesses across the country are now supported by the UK’s banking and finance industry with a total of £65.5bn in lending through government-backed Coronavirus lending schemes.
Almost 1.4 million smaller businesses have now accessed financing as part of the Bounce Back Loan Scheme, with over 61,000 enterprises securing loans through the scheme in the past month. These figures include businesses which have ‘topped up’ their Bounce Back Loans to the full £50,000, or a maximum of 25% of their turnover if lower, available as part of the scheme. This option was announced when the government extended the coronavirus lending schemes.
Lenders have also approved over 77,900 facilities through the CBIL Scheme, whilst the Coronavirus Large Business Interruption Loan Scheme has allowed 658 firms to access over £4.8bn worth of support.
There are 28 lenders accredited to the BBL Scheme, with the vast majority of businesses having an existing relationship with one of these firms. 111 lenders are accredited to the CBIL scheme.
Government-backed loans are just one part of the industry’s plan to support businesses across the UK. Lenders continue to provide a range of additional measures, including working capital extensions, overdraft extensions and capital repayment holidays.
Stephen Pegge, managing director of Commercial Finance at UK Finance, said: “The UK’s banking and finance industry continues to back businesses across the country to get them through these challenging times.
“Nearly 1.5 million businesses are already supported by a government-backed loan scheme. Around 99% of SMEs with a business bank account are with a provider that offers Bounce Back Loans, while bank staff continue to work incredibly hard to process applications to meet high levels of demand, while carrying out necessary anti-fraud and money laundering checks on all applications.
“Following the extension of the coronavirus lending schemes, SMEs can now ‘top up’ their Bounce Back Loan to the maximum value of £50,000, or if lower, 25% of the turnover they declared when they first applied. Businesses are encouraged to contact their lender if they wish to access these additional funds from their existing loan.
“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.”