Government Business Lending scheme figures rise to £68bn

New figures published by HM Treasury has shown that over 1.5 million businesses across the country are supported by the UK’s banking and finance industry with a total of over £68 billion in lending through government-backed coronavirus lending schemes.

Over 34,500 small and micro businesses have accessed a Bounce Back Loan over the past month, with more than 1.4 million enterprises receiving finance through the scheme since it launched in May. 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.

Over 82,000 businesses have now secured facilities through the CBIL scheme, while the Coronavirus Large Business Interruption Loan Scheme has allowed 675 larger firms to access almost £5 billion worth of support.

Stephen Pegge, Managing Director of Commercial Finance at UK Finance, said “The UK’s banking and finance industry continues to support businesses of all sizes across the country to help them through these challenging times.”

“As this year draws to a close, over 1.5 million businesses are backed by a government-backed loan scheme with funds totaling over £68 billion, demonstrating the unprecedented level of assistance provided to UK enterprises. Over the past nine months, bank staff have worked hard to process applications to meet extremely high levels of demand, while ensuring that the necessary anti-fraud and money laundering checks are carried out on all applications.”

“Following the extension of the coronavirus lending schemes, SMEs can now ‘top-up’ their Bounce Back Loan to the maximum value of £50,000, or 25 per cent of their turnover if lower. Businesses are encouraged to contact their lender if they wish to access these additional funds from their existing loan.”

“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.”