£10.5bn has now been distributed to UK businesses through the coronavirus business interruption loan scheme (CBILS).
The latest figures from HM Treasury show that more than 50,000 small- and medium-sized enterprises (SMEs) have received funding from a CBILS-approved lender since the government-backed scheme was launched three months ago.
In total, government-backed business lending schemes have provided more than £40bn in funding to businesses which have been impacted by the pandemic.
More than 972,000 businesses have been provided with £40.7bn since the end of March 2020.
One quarter of this money was distributed via CBILS-approved lenders, which include two peer-to-peer platforms – Funding Circle and Assetz Capital.
£28bn has been made available to SMEs through the bounce back loan scheme (BBLS), while 315 larger businesses have received £2.1bn through the coronavirus large business interruption loan scheme (CLBILS).
“Covid-19 has created significant challenges for businesses of all sizes and the fintech sector has played a crucial role in ensuring SMEs are able to access loans,” said Charlotte Crosswell, chief executive of trade body Innovate Finance.
“As a greater number of fintechs have been accredited to administer CBILS and BBLS, technology has been used to assess applications and distribute loans at high volumes and speed. We have proved that the sector is able to offer innovative solutions where traditional approaches may struggle.
“As the lockdown eases and the economy begins to reopen, fintechs will continue to respond to the financial needs of SMEs and provide a vital lifeline to businesses struggling with cash flow.”