£35 billion provided to 830,000 businesses by lenders through COVID-19 loan schemes

By June 9, 2020NEWS

The banking and finance industry has backed over 830,000 UK businesses through the Government’s coronavirus loan schemes.

Figures published by HM Treasury today reveal that lenders have provided £34.9 billion through the three major government-backed lending programmes. £3.6 billion has been granted to 85,000 businesses in the past week, with more applications expected to be approved in the coming days as the industry continues to help the UK get through these tough times.

Lenders are approving thousands of Bounce Bank Loans for small and micro businesses every day. In the five weeks since the launch of the scheme, over 780,000 businesses have successfully applied – an average of 156,000 approvals by lenders each week. £23.8 billion has been provided by the industry through the BBL scheme, including £2.5 billion in the last seven days.

48,000 businesses have received funding through the Coronavirus Business Interruption Loan Scheme (CBILS) so far, with lenders approving £9.6 billion in total.

As of 7 June, £1.6 billion has been approved to 244 larger businesses via the Coronavirus Large Business Interruption Loan Scheme (CLBILS), with 53 firms securing finance in the past week.

These government-backed schemes are just part of the banking and finance sector’s plan to help businesses in the UK through the coronavirus crisis. This extensive support includes working capital extensions, overdraft extensions, capital repayment holidays and asset-based finance, allowing businesses to access the support that is most appropriate to their needs.

Mike Conroy, Director of Commercial Finance, UK Finance, said:

“The banking and finance sector has a clear plan to help businesses of all sizes get through these challenging times.

“The industry acknowledges the role it must play and is providing an unprecedented level of support, with £35 billion approved to 830,000 businesses through government-backed lending schemes in less than three months.

“This sits alongside the broad package of measures the industry has introduced to help businesses access the support they need, including overdraft extensions and capital repayment holidays.

“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.”

Case studies

Coronavirus Business Interruption Loan

Alder Sportswear – Devon-based water sports distributor

A Devon water sports distributor, Alder Sportswear, has secured a CBILS loan from NatWest to safeguard the business and jobs. Alder Sportswear sells a range of water sports equipment from wetsuits to surfboards and traditionally has its busiest period between the months of February and May. When lockdown began in late March, the business needed support to deliver existing orders to its customers and mitigate the impact of an anticipated fall in sales. The funding will ensure the Okehampton company can pay its suppliers and deliver goods to its customers across the UK and Europe, as well as providing a buffer for the next few months as lockdown begins to ease.

Bark Engineering – Lancashire

Bark Engineering provides steel fabrication work as well as laser cutting and steel processing. The business secured a CBILS loan through Barclays , which will not only help to support their team of 20 staff, but will also enable them to fulfil big incoming enquiries such as producing ventilator boxes to support coronavirus medical efforts, that will continue to sustain the business.

Safejaws – sports brand in Walsall

SafeJaws, a sports brand with a manufacturing and retail operation based in Walsall, received a six figure loan under CBILS from HSBC to accelerate product development.

Bounce Back Loan

Cigno – coffee shop in Burntwood, Staffordshire

The independent family-run coffee shop has been provided with a Bounce Back Loan by Barclays which will help support cash flow challenges.

CECORP International – Kingsbridge

CECORP International is a sports distribution firm which specialises in eyewear. The company has secured a £26,000 Bounce Back Loan from HSBC which will help safeguard the business whilst retailers in Europe and the UK are closed.

Other lending and support

BioFuels & Oils – South Yorkshire

BioFuels & Oils supplies biofuel to power generators at NHS hospitals across the UK. The Six company received a six-figure funding package from HSBC. This will ensure the company can keep backup generators at hospitals fuelled with a sustainable alternative to diesel, avoiding any potential power and energy difficulties.

Notes:

UK Finance is the collective voice for the banking and finance industry. Representing more than 250 firms across the industry, we act to enhance competitiveness, support customers and facilitate innovation.

  1. HM Treasury data on lending under the CBIL, BBL and CLBIL schemes is available here. Figures show cumulative applications and approvals up to close of business on 7 June 2020 by accredited lenders, as reported to HM Treasury by close of business 8 June. Previous UK Finance data publications on lending under the CBIL scheme were based on data submitted by UK Finance members only. The Government intends to publish data on lending under the CBIL, BBL and CLBIL schemes going forwards. For further details please contact the HMT press office on pressoffice@hmtreasury.gov.uk
  2. The banking and finance industry has put in place a clear plan to help Britain through:

 – 1.8 million mortgage payment holidays

 – 27 million interest-free overdrafts offered and 877,800 credit card payment holidays

 – £35 billion of lending to nearly 830,000 businesses through government Covid-19 lending schemes

 – Protecting customers from scams and fraud

 – The higher limit for contactless payments

  1. The Bank of England has announced that the Covid Corporate Financing Facility (CCFF) has so far supported £16 billion of lending.
  2. UK Finance issued a joint statement on behalf of the seven largest SME lenders in response to the Chancellor’s announcement of changes to the Coronavirus Business Interruption Loans Scheme (CBILS) on 27 April 2020.
  1. The British Business Bank (BBB) approved three more lenders for accreditation under the CBIL scheme last week, bringing the total number of accredited lenders to over 80. The total number of accredited lenders under the Bounce Back Loan Scheme is now 19, with the British Business Bank approving one new lender last week. All lenders accredited under the CBIL scheme have been invited to join the BBL Scheme.More information on the CBIL scheme is available here. More information on the BBL scheme is available here. More information on the CLBILS scheme is available here.
  2. The government’s ‘support finder’ tool can help businesses and self-employed people across the UK to quickly and easily determine what financial support is available to them during the coronavirus pandemic.

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