Lenders have provided £13bn through the coronavirus business interruption loan scheme (CBILS) to businesses hit by Covid-19, figures from the Treasury have shown.
58,600 small– and medium-sized enterprises (SMEs) have benefited from CBILS while 480 larger businesses have been supported through the coronavirus large business interruption loan scheme (CLBILS).
Meanwhile, more than 1.13 million small and micro businesses have been supported through the 100 per cent government-backed bounce back loan scheme, which provides loans of up to £50,000.
Since the scheme was launched three months ago, lenders have approved an average of 87,000 new bounce back loans per week.
In total, British Business Bank accredited lenders – which includes four peer-to-peer lending platforms – have supported just under 1.2 million businesses through the government’s emergency loan schemes.
“The banking and finance industry remains committed to supporting the nation’s businesses through the challenges they are facing from the coronavirus crisis,” said Stephen Pegge, managing director of commercial finance at UK Finance.
“Over the past three months, 26 lenders have thrown their support behind the bounce back loan scheme by lending to over 1.13 million small and micro enterprises, highlighting the importance of the scheme to the small business community in these challenging times.
“Bounce back loans are just one aspect of the sector’s support package for the UK economy, alongside other measures including capital repayment holidays, extended overdrafts and invoice finance facilities.
“This support is designed to ensure businesses are able to navigate the coming months, but diverse sources of finance will be needed to help them prosper in the future.
“It remains 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.”