Treasury tracks 1.2 million UK businesses accessing emergency lending schemes

The HM Treasury has published a summary of the take-up of its ‘Bounce Back Loan’ (BBLS) and ‘Coronavirus Business Interruption Loan’ (CBILS) schemes, helping British businesses overcome COVID-19 challenges.

Announced on 28 April by Chancellor Rishi Sunak, the BBLS programme launched to provide 100% state-backed guaranteed loans ranging from £2000-to-£50,000 made available for small and micro-sized businesses.

Supporting the liquidity of smaller enterprises, the Treasury instructed 15 approved lenders to provide direct access to loans for UK businesses maintaining a ‘maximum value of facilities below £50,000’.

Three months following the BBLS’ launch, the Treasury reveals that 11.3 million small/micro businesses have accessed the scheme, with the government securing £3.3 billion in guaranteed loans as of 2 August.

Meanwhile for medium-sized incumbents, since March the Treasury has provided businesses access to its CBILS programme providing guaranteed loans of up to £5 million for SMEs with a turnover of less than £45 million per year.

The Treasury appointed 40 accredited institutions to supply its CBILS loans, providing capital via term loans, extended overdrafts and further extended invoice and asset facilities.

Since March, the Treasury reveals that it has supported 58,600 businesses with over £13 billion worth of loans and extended facilities.

The Treasury reminds UK SMEs that its CBILS programme will close its facilities at the end of September trading, with the BBLS will remain open until the end of November. 

UK Finance praised the work of commercial lenders in swiftly adopting the Treasury business loan schemes, providing financial support for small and SME business – a vital dynamic in safeguarding the UK economy through the challenges of the coronavirus pandemic.

Stephen Pegge
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,” said Stephen Pegge UK Finance’s MD for Commercial Finance

 “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 can navigate the coming months, but diverse sources of finance will be needed to help them prosper in the future.