UK coronavirus loans top £31bn but just half of the Coronavirus Business Interruption Loan Scheme (CBILS) applications approved
The government published new statistics that show 745,388 businesses across the UK have to date benefitted from over £31 billion in loans and guarantees to support their cashflow during the crisis through schemes delivered by the British Business Bank as at 31 May.
This includes 699,354 Bounce Back Loans worth £21.29 billion, 45,843 loans worth over £8.9 billion through the Coronavirus Business Interruption Loan Scheme and £1.1 billion through the Coronavirus Large Business Interruption Loan Scheme.
But many firms that are too big for bounce-back loans report that they are struggling to get the cash they need from CBILs programme or its bigger counterpart, the CLBILs scheme.
The approval rate on CBILs programme is currently just 51 per cent. More than 89,700 firms have applied for money through CBILs but only 45,840 have received any.
“The amount of support available to firms affected by the Covid-19 crisis is unparalleled”, said Stephen Jones, CEO of UK Finance.
“But government-backed loans are not the only support the banking and finance sector has made available. Over the past few months, lenders have put in place a clear plan to support businesses in every region of the country, including through offering extended overdrafts, capital repayment holidays and asset-based finance to businesses that need support.
“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.”
Posted on Jun 02, 2020.