Government business lending rises to £75bn

26th March 2021

Latest Government figures have shown that the banking and finance industry has provided more than £75 billion in finance to over 1.6 million UK businesses through government-backed coronavirus lending schemes according to newly published HM Treasury data.

Lenders have provided finance to over 30,600 businesses through Bounce Back Loans over the past month, bringing the total number of small businesses accessing the scheme to 1.53 million since it launched in May last year. More than £46.5 billion has now been lent through this scheme. This total includes businesses that have opted to ‘top-up’ their Bounce Back Loans to the full £50,000, or a maximum of 25 per cent of their turnover if lower, available through the scheme.

The CBIL scheme has provided £23.3 billion in finance to 98,000 enterprises, whilst 716 larger firms have used the Coronavirus Large Business Interruption Loan Scheme to access £5.3 billion in support.

Since the schemes were first put in place, the UK banking and finance industry has supported 27 per cent of British businesses through the initiatives. The vast majority of firms in the UK 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.

The Chancellor of the Exchequer, Rishi Sunak, said ” I said we would do whatever it takes to protect jobs and livelihoods and that is exactly what we have done. I’m delighted that our Bounce Back Loan scheme worked so effectively that it issued three loans every minute since its launch last May. That means every 20 seconds a hardworking small business owner benefited from this support.”

“We’ll continue to protect jobs through our new Recovery Loan Scheme – part of our wider Plan for Jobs – as we move out of this crisis.”

Craig Beaumont, Chief of External Affairs at FSB, said “1.6 million small businesses have now been helped to keep going through an awful year by securing Bounce back loans. As the unlock takes place, the economic recovery will rely on the successor scheme to fire on all cylinders.”

Stephen Pegge, Managing Director of Commercial Finance at UK Finance, said “The banking and finance industry has provided an unprecedented level of support to UK businesses throughout the pandemic, in close collaboration with the government and the British Business Bank, and will continue to do so through new measures such as the government-backed Recovery Loan Scheme.”

“Many businesses, and some specific sectors, may face extended disruption and financial difficulty in 2021. With widespread restructuring and recovery situations expected, the banking and finance sector is focused on supporting the turnaround of companies where possible, while ensuring that businesses which are no longer viable are treated fairly.”

Loan Type Value of Facilities Approved Number of Facilities Approved
Coronavirus Business Interruption Loan Scheme (CBILS) £23.28bn 98,344
Coronavirus Large Business Interruption Loan Scheme (CLBILS) £5.30bn 716
Bounce Back Loan Scheme £46.53bn* 1,531,095
Covid Corporate Financing Facility (CCFF) £104bn of commercial paper ** 304
Total financing £179.11bn 1,630,459

[As of 21 March 2021]