- 24th June 2020
- Posted by: Suzy Hill
- Category: Business News, COVID-19 NEWS
Government-backed coronavirus lending now over £40 billion
Over £40 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).
Almost threequarters of the lending has been through the BBLS, which has now reached £28 billion. 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 £10.5 billion to over 50,000 businesses through the CBILS, while loans of £2.1 billion have been approved to 315 mid-sized and large UK businesses through the CLBILS.
Commenting on the figures, Stephen Pegge, Managing Director of Commercial Finance at UK Finance, said: ‘Three months on from the launch of the first support measure, the CBIL scheme has helped 50,000 UK businesses to get access to the finance they need.
‘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.’