Nearly £71bn provided to over 1.5 million businesses by lenders through Covid-19 loan schemes
Figures published today by HM Treasury show that over 1.5 million businesses across the country have been supported by the UK’s banking and finance industry through government-backed lending schemes.
Over 39,000 small enterprises have received a Bounce Back Loan over the past month, with a total of 1.47 million businesses accessing the scheme since it launched in May last year. This total includes the 83,173 businesses which have opted to ‘top-up’ their Bounce Back Loans to the full £50,000, or a maximum of 25% of their turnover if lower, available through the scheme.
Over 87,000 businesses have been supported through the CBIL scheme, whilst the Coronavirus Large Business Interruption Loan Scheme has provided over £5.1bn in financing to almost 700 larger firms.
The vast majority of UK businesses have an existing relationship with at least one of the 29 lenders accredited to the BBL scheme, or the 118 lenders now 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. The industry will continue to support businesses over the coming year as economic uncertainty persists as a result of the pandemic.
Stephen Pegge, managing director of commercial finance at UK Finance, said: “The UK’s banking and finance industry remains committed to helping businesses of all sizes through the crisis.
“Over 1.5 million businesses have now received nearly £71bn worth of support through the government-backed loan schemes, demonstrating the unprecedented level of support provided to UK enterprises by the industry.
“As economic uncertainty due to the pandemic continues, many individual businesses and some specific sectors are facing significant and extended disruption and may find themselves in financial difficulty. With widespread restructuring and recovery situations expected, the finance sector and related professional services are focused on providing the capacity and expertise to help support the turnaround of companies where possible, while ensuring the sympathetic treatment of those businesses which are no longer viable.”
