Lenders back 1.2 million businesses through Covid-19 lending schemes

By August 13, 2020NEWS
  • Figures published today by HM Treasury reveal that over 1.2 million businesses in the UK have been supported by finance from lenders through government-backed coronavirus lending schemes.
  • The Bounce Back Loan Scheme (BBLS) continues to support small and micro businesses across the country, with nearly 1.16 million now receiving finance through the scheme.
  • Lenders have also now approved £13.4 billion worth of financing via the Coronavirus Business Interruption Loan Scheme (CBILS) to 59,520 companies impacted by Covid-19.
  • The Coronavirus Large Business Interruption Loan Scheme (CLBILS) has now secured backing for 497 businesses approved by lenders.

Responding to the latest HM Treasury figures on Covid-19 support for businesses, Managing Director of Commercial Finance at UK Finance, Stephen Pegge, said:

“As the economic effects of the pandemic continue to develop, the UK’s banking and finance industry remains committed to helping the nation’s businesses through the crisis.

“The Bounce Back Loan Scheme now supports nearly 1.16 million small and micro enterprises, demonstrating that it continues to be a crucial and valued part of the industry’s support package for the economy.

“The government-backed loan schemes are just one part of the industry’s broader plan for helping the nation’s businesses, and operate alongside commercial lending, capital repayment holidays, extended overdrafts and invoice finance facilities.

“It is 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.”

UK Finance analysis of data published last week by HM Treasury showed that the flow of finance to businesses across the UK through BBLS and CBILS has been distributed on a relatively even basis around UK regions and devolved nations.

Case studies

Please find a selection of case studies below which are available for interview. For further information, please contact the UK Finance press office on 020 7416 6750 or email press@ukfinance.org.uk

Coronavirus Business Interruption Loan Scheme (CBILS)

Ena Salon – London

Ena Salon, a hair and beauty boutique in London, secured a £200,000 CBILS loan from Lloyds Bank to meet fixed payments, including rent and insurance costs, while income ceased due to lockdown.

Glenalmond Timber – Perthshire

Perthshire-based timber manufacturer Glenalmond received £600,000 in CBILS funding from NatWest to help safeguard the future of the business. The finance package has helped the business to continue supplying clients across Scotland, the UK, Ireland and Europe.

Oliver Greenall Racing – Cheshire

This Cheshire-based racehorse training centre secured a £750,000 CBILS funding package from NatWest to protect jobs after racing was put on hold due to lockdown. The centre, which is currently training 40 horses, was set to achieve a record year before the season was cut short.

Oriental Foods – Shrewsbury

CBILS financing provided by Lloyds Bank helped Oriental Foods meet a significant increase in demands for its products, with sales doubling over the period of lockdown.

Tasca Tankers – Wakefield

A £250,000 CBILS package provided by Barclays helped Tasca Tankers, a manufacturer of road haulage equipment, to cover a shortfall in cash flow, enabling the business to avoid delays to projects and delivery timescales.

Wheels Motorcycles – Peterborough

Wheels Motorcycles, a dealership in Peterborough, secured a £350,000 CBILS package from Barclays to ensure that the business would be able to survive a drop in motorcycle sales over the summer, when the business realises most of its annual revenue.

Bounce Back Loan Scheme (BBLS)

Ecomove – Bristol

Ecomove, a Bristol-based retailer, secured BBLS funding from Lloyds Bank to open a flagship store in the city.

Leaf Clothing – Newcastle

Leaf Clothing, an independent boutique in Newcastle, received BBLS funding from Barclays to ease cash flow pressure caused by the lockdown. The business was able to continue paying full wages to staff throughout the period.

Notes to editors

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 for CBILS, CLBILS and BBLS show cumulative applications and approvals up to close of business on 9 August by accredited lenders, as reported to HM Treasury by close of business 10 August 2020. Previous UK Finance data publications on lending under the CBIL scheme were based on data submitted by UK Finance members only. 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

3. More information on the CBIL scheme is available here. More information on the BBL scheme is available here. More information on the CLBIL scheme is available here.

4. 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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