Commercial News

£15bn lent through Covid-19 loan schemes

Rozi Jones -
|
14th May 2020
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"Bank staff are working tirelessly to get financing quickly to those firms who need it, with almost £15 billion of lending provided to over 304,000 businesses"

Lenders have now provided almost £15 billion to over 304,000 businesses through the three major government-backed lending schemes.

£8.378 billion has been approved to 268,173 businesses through the Bounce Back Loan Scheme in the week since it launched.

Lenders have provided £6.094 billion to 35,919 businesses so far through the Coronavirus Business Interruption Loan Scheme (CBILS). Following reforms to the scheme announced by the Treasury and British Business Bank, lenders have worked to streamline the application process while enabling those firms who have applied but would qualify for a Bounce Back Loan to switch their facility. 

Figures for the Coronavirus Large Business Interruption Loan Scheme (CLBILS) show lenders approved £359 million to 59 mid-sized and larger UK businesses. The number of applications is lower than for CBILS and BBLS but the average value of each loan is higher at over £6 million, reflecting that this scheme is targeted at a smaller number of companies with a turnover of over £45 million eligible for this scheme.

Stephen Jones, chief executive of UK Finance, said: “The banking and finance industry is determined to play its part in helping businesses of all sizes get through these tough times.

“Bank staff are working tirelessly to get financing quickly to those firms who need it, with almost £15 billion of lending provided to over 304,000 businesses through government-backed schemes so far.

“This forms part of the industry’s broad package of support for businesses including commercial lending, capital repayment holidays, extended overdrafts 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.”

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