UK banks lend £15bn through coronavirus loan schemes
The chancellor Rishi Sunak today said the UK banking and finance industry has provided almost £15bn to almost 304,000 businesses through three government-backed coronavirus loan schemes.
In the week since the bounce back loan scheme (BBLS) launched, £8.4bn has been approved to 268,173 businesses – an average of 38,000 loans a day.
Lenders have provided £6.1bn through the coronavirus business interruption loan scheme (CBILS) according to figures from UK Finance.
Lenders have approved £359m under the coronavirus large business interruption loan scheme (CLBILS) to 59 mid-sized and larger UK businesses.
Under BBLS, SMEs can apply for loans of up to £50,000 and expect to get the cash within as little as 24 hours.
The government has guaranteed 100 per cent of such loans. Sunak announced them earlier this month after criticism banks have been slow to lend out larger sums to small businesses struggling amid coronavirus.
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.
“Bank staff are working tirelessly to get financing quickly to those firms who need it, with almost £15 billion 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.”