Lenders back 750,000 businesses with more than £31bn
Figures published by the Treasury reveal how the banking and finance sector is helping businesses across the UK through these tough times.
So far, lenders have approved over £31.3bn to over 745,000 businesses through government-backed schemes. In the past week alone, more than £3.8bn in lending has been provided to 94,000 firms through these schemes. More applications have been received and are expected to be approved in the coming days.
This represents an unparalleled level of support from the industry. Since the launch of the first coronavirus support scheme in late March, over 745,000 facilities have been approved by lenders through the Bounce Back Loan Scheme (BBLS), the Coronavirus Business Interruption Loan Scheme (CBILS) and the Coronavirus Large Business Interruption Loan Scheme (CLBILS) in a little over two months. In comparison, an average of 275,000 loans and overdrafts were provided in total each year by the ten largest banking groups to UK SMEs over the past five years .
As of 31 May, lenders have provided £21.3bn through the Bounce Back Loan Scheme (BBLS), an increase of £2.8bn over the past week. Over 91,000 applications were approved in the past week.
Lenders have approved £8.9bn in support through the Coronavirus Business Interruption Loan Scheme (CBILS) to almost 46,000 businesses. This is an increase of over £750m since data was last published.
More support has also been made available for larger and medium sized businesses in the UK through the Coronavirus Large Business Interruption Loan Scheme (CLBILS). The number of businesses that have received financial support increased by 191, totalling just over £1.1bn.
These government-backed schemes are just part of the banking and finance sector’s plan to help businesses in the UK through the coronavirus crisis. This extensive support includes working capital extensions, overdraft extensions, capital repayment holidays and asset-based finance, allowing businesses to access the support that is most appropriate to their needs.
Stephen Jones, Chief Executive of UK Finance, said:
“These figures show that the banking and finance sector is committed to playing its part in helping businesses across the UK through these tough times.
“The amount of support available to firms affected by the Covid-19 crisis is unparalleled. Over £31bn has been approved in government-backed lending schemes so far to almost 750,000 businesses, with a further £19 billion drawn under bank-arranged commercial paper facilities.
“But government-backed loans are not the only support the banking and finance sector has made available. Over the last few months, lenders have put in place a clear plan to support businesses in every region of the country, including through offering extended overdrafts, capital repayment holidays and asset-based finance to businesses that need support.
“It’s 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.”