Government coronavirus business loans rise to £51.7bn

New data released by the Treasury has revealed that £51.7 billion was lent to businesses via the Government’s emergency coronavirus loans funding schemes.

Lending under the bounce back loan scheme accounted for £34.96bn, with a total of 1,404,726 applicants and 1,157,296 approvals; under the coronavirus businesses interruption loan scheme (CBILS), lending hit £13.41bn, with 121,669 applications and 59,520 approvals; and the coronavirus large business interruption loan scheme (CLBILS) made up £3.4bn of lending, with 497 loans approved out of a total of 896 applications.

The figures eveal that over 1.2 million businesses in the UK have been supported by finance from lenders through government-backed coronavirus lending schemes.

The Bounce Back Loan Scheme (BBLS) continues to support small and micro-businesses across the country, with nearly 1.16 million now receiving finance through the scheme.

Managing Director of Commercial Finance at UK Finance, Stephen Pegge, said “As the economic effects of the pandemic continue to develop, the UK’s banking and finance industry remains committed to helping the nation’s businesses through the crisis.”

“The Bounce Back Loan Scheme now supports nearly 1.16 million small and micro enterprises, demonstrating that it continues to be a crucial and valued part of the industry’s support package for the economy.”

“The government-backed loan schemes are just one part of the industry’s broader plan for helping the nation’s businesses, and operate alongside commercial lending, capital repayment holidays, extended overdrafts and invoice finance facilities.”

“It is 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.”