Close to £15
billion borrowed through government’s coronavirus schemes
Almost £15
billion has now been borrowed through government-backed schemes designed to
help businesses get through the coronavirus (COVID-19) crisis, according to the
latest figures from the Treasury.
More than
304,000 businesses have now accessed support through either the Bounce Back
Loan Scheme (BBLS), the Coronavirus Business Interruption Loan Scheme (CBILS)
or the Coronavirus Large Business Interruption Loan Scheme (CLBILS).
The BBLS has
proven the most popular of the support schemes available, with over £8.3
billion lent through the scheme since its launch on 4 May. The BBLS allows
small businesses adversely affected by the pandemic to apply for up to £50,000,
with the government guaranteeing 100% of the advance.
Lenders have
provided £6.1 billion to 35,919 businesses through the CBILS, while loans of
£359 million have been approved to 59 mid-sized and larger UK businesses
through the CLBILS.
Commenting on
the figures, Stephen Jones, Chief Executive of UK Finance, said: ‘The banking
and finance industry is determined to play its part in helping businesses of
all sizes get through these tough times.
‘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.’