Emergency support schemes delivered by the British Business Bank (BBB) have collectively channelled more than £14bn in loans to more than 300,000 smaller firms, new data has revealed.
The state development lender said that this includes 36,000 loans worth over £6bn through the Coronavirus Business Interruption Loan Scheme (CBILS), 268,000 Bounce Back Loans worth £8.3bn and 59 loans worth £359m through the Coronavirus Large Business Interruption Loan Scheme (CLBILS).
However, the BBB also released data on the number of applications, which showed that many applicants have not been approved to date.
The Bounce Back Loan scheme – which provides lenders with a 100 per cent government-backed guarantee on the value of the loan – offers loans of up to £50,000 to the country’s smallest businesses. There have been 363,646 applications for the scheme, of which 268,000 have been approved, equating to almost 75 per cent.
CBILS offers loans to small- and medium-sized businesses with turnover of up to £45m, with lenders given an 80 per cent government-backed guarantee. There have been 71,316 applications for CBILS, of which 36,000 were approved, equating to around 50.5 per cent.
There have been 358 applications for CLBILS, which provides finance to larger businesses with a turnover of more than £45m, but just 59 have been approved, equating to around 16 per cent.
Banking and finance industry trade body UK Finance, which separately announced corresponding data today, noted that the number of applications for CLBILS loans is much higher than the other schemes but the average value of each loan is higher at over £6m, reflecting that this scheme is targeted at a smaller number of eligible companies.
“The banking and finance industry is determined to play its part in helping businesses of all sizes get through these tough times,” said Stephen Jones, chief executive of UK Finance.
“Bank staff are working tirelessly to get financing quickly to those firms who need it, with almost £15bn 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.”
CBILS came under fire after it was introduced, due to the slow pace of loan approvals by banks.
UK Finance said that lenders have worked to streamline the application process, while enabling those firms who have applied but would qualify for a Bounce Back Loan to switch their facility.