HM Treasury’s weekly update on the COVID-19 business support schemes indicates that lenders, both traditional banks and Fintechs, have provided a growing amount of financing to both smaller and larger firms impacted by the Coronavirus. The main government programs include; the Coronavirus Business Interruption Loan Scheme (CBILS), Coronavirus Large Business Interruption Loan Scheme (CLBILS), Bounce Back Loan Scheme (BBLS) and Future Fund Scheme.
According to the update, lenders have approved finance to 50,482 SMEs through CBILS since its launch three months ago. The total value of approved loans stands at £10.53 billion.
Under the CLBILS, 315 loans have been approved for a total value of £2.1 billion.
The BBLS has garnered the most approved loans with a total of 921,229 SMEs receiving £28.09 billion
It was reported earlier that the Future Fund has had £236.2 million approved for 252 convertible loans.
Stephen Pegge, Managing Director of Commercial Finance at UK Finance, commented on the update:
“Since the beginning of the crisis the banking and finance industry’s core focus has been implementing a plan to help businesses through this difficult time. Across all the government-backed schemes, lenders have now provided over 970,000 business with £40 billion in finance. Three months on from the launch of the first support measure, the CBIL scheme has helped 50,000 UK businesses to get access to the finance they need. 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.”
The data is based on management information supplied to HM Treasury by accredited lenders for CBILS, CLBILS and BBLS and by British Business Bank for Future Fund.