Coronavirus (COVID-19)—750,000 businesses receive over £31bn through loan schemes

Coronavirus (COVID-19)—750,000 businesses receive over £31bn through loan schemes

HM Treasury has updated its management information concerning the Coronavirus (COVID-19) Business Interruption Loan Scheme (CBILS), Coronavirus Large Business Interruption Loan Scheme (CLBILS) and Bounce Back Loan Scheme (BBLS) and Future Fund. The figures reveal that lenders have approved over £31.3bn to over 745,000 businesses through government-backed schemes.

The figures also reveal that:

• more than £3.8bn in lending in the past week has been provided to 94,000 firms via these schemes

• since the commencement of the first coronavirus support scheme in March 2020, over 745,000 facilities have been approved by lenders through the BBLS, CBILS and CLBILS

• by 31 May 2020, lenders had provided around £21.3bn via the BBLS, an increase of £2.8bn over the previous week

• through the CBILS, lenders have approved £8.9bn in support to approximately 46,000 businesses, an increase of around £750m since the previous statistics were published

• the number of larger and medium-sized businesses in the UK supported via the CLBILS has increased by 191, with financial support totalling approximately £1.1bn

Commenting on the updated figures, the chief executive of UK Finance, Stephen Jones, noted that 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,’ he said.

‘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,’ Jones added.

Sources:

HM Treasury coronavirus (COVID-19) business loan scheme statistics

Lenders back 750,000 businesses with more than £31 billion through Covid-19 loan schemes

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