Over 22bn loaned to half a million businesses
Figures published by HM Treasury today show that the banking and finance industry has approved over £22bn in loans to over half a million (505,043) businesses so far through the three major government-backed lending schemes.
In the past week alone lenders have provided over £7bn to businesses through the Bounce Back Loan Scheme (BBLS), the Coronavirus Business Interruption Loan Scheme (CBILS) and the Coronavirus Large Business Interruption Loan Scheme (CLBILS). Bank of England data shows that this is around seven times the average weekly value (£1bn) of all new loans approved for SMEs in the year to February 2020.
Lenders have provided £14.18bn through the BBL scheme in the two weeks since its launch, rising by £5.8bn in the past week. The number of loans approved has increased by over two-thirds (73%) to 464,393, meaning that on average over 33,000 loans have been granted each day since the scheme launched on 4 May.
£7.25bn has been approved to 40,564 businesses through the CBIL scheme. Lenders are also helping those small businesses who have both begun and completed applications for loans of up to £50,000 through this scheme to switch to a Bounce Bank Loan should they wish.
The number of mid-sized and larger UK businesses who have received financial support through the CLBIL scheme increased to 86, with total lending of £590m. Changes announced by HM Treasury this morning mean that businesses will now be able to apply for loans of up to £200m through CLBILS.
The number of lenders accredited by the British Business Bank under the schemes continues to rise. Businesses can now access finance through CBILS from nearly 70 providers and BBLS from 17 lenders, giving firms a wide range of choice from high street banks to alternative finance providers.
The government-backed schemes sit alongside a broad package of measures which are available to businesses from the banking and finance sector. This extensive support includes working capital facilities, overdraft extensions, capital repayment holidays and asset-based finance, allowing businesses to access the support that’s most appropriate to their needs.
Stephen Jones, chief executive of UK Finance, said:
“The banking and finance industry is committed to helping businesses get through these tough times, with over £22bn of lending provided to almost half a million businesses through government-backed schemes so far and a further £18.8bn drawn under bank arranged commercial paper facilities.
‘Banks stand ready to support businesses large and small, and the changes announced by HM Treasury means firms can access loans from £2,000 to £200m through the coronavirus loan schemes.
‘These are just one part of a range of measures from the industry available to businesses including extended overdrafts, capital repayment holidays and asset-based finance.
“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.”