HM Treasury provided an update today on the progress of the various programs designed to backstop the UK economy. These programs include 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. According to the government, businesses have benefitted from over £14 billion in loans and guarantees to support their cash flow during the crisis. 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.
Almost £15 billion has been provided to over 304,000 businesses.
According to a note from UK Finance, bank staff has worked hard to get these schemes up and running at short notice and enhance processes where necessary to get money to businesses as swiftly as possible. The number of accredited lenders under the CBIL and BBL schemes continues to rise, meaning businesses can access support from a wide variety of lenders, from high street banks to Fintech providers.
Stephen Jones, Chief Executive of UK Finance, commented on the update:
“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.”
Additional information is available on the British Business Bank website.