Lending support to businesses rises to £15bn

The government published new statistics that show businesses have to date benefitted from over £14 billion in loans and guarantees to support their cashflow during the crisis through schemes delivered by the British Business Bank. This includes 268,000 Bounce Back Loans worth £8.3 billion, 36,000 loans worth over £6 billion through the Coronavirus Business Interruption Loan Scheme, and £359 million through the Coronavirus Large Business Interruption Loan Scheme.

UK Finance says that lenders are working hard to provide support under the schemes to businesses of all sizes, with the Bounce Back Loan Scheme (BBLS) targeted at sole traders and small firms, the Coronavirus Business Interruption Loan Scheme (CBILS) for small and medium sized enterprises (SMEs) and the Coronavirus Large Business Interruption Loan Scheme (CLBILS) for larger businesses.

£8.378 billion has been approved to 268,173 businesses through the BBL scheme in the week since it launched. This is an average of over 38,000 loans being approved each day, as bank staff work tirelessly to meet unprecedented demand and deliver support to those firms who need it.

Lenders have provided £6.094 billion to 35,919 businesses so far through the CBIL scheme. Following reforms to the scheme announced by the Treasury and British Business Bank, lenders have worked to streamline the application process2 while enabling those firms who have applied but would qualify for a Bounce Back Loan to switch their facility.

Figures for the CLBIL scheme 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.”

David Oldfield, Group Director and CEO Commercial Banking at Lloyds Banking Group, said “With more and more businesses set to re-open in the coming weeks, we want to do all we can to help Britain’s businesses bounce back. We have already provided funding for tens of thousands of businesses to give them the breathing room needed during the lockdown.”

Key statistics:

	Cumulative number of approved facilities	Cumulative value of approved facilities	Cumulative number of applications
Bounce Back Loan Scheme	268,173	£8.378 billion	363,646
Coronavirus Business Interruption Loans Scheme	35,919	£6.094 billion	71,316
Coronavirus Large Business Interruption Loans Scheme	59	£359 million	358