You are here: Home - Household Bills - News -

£73bn lent to businesses via Covid loan schemes

0
Written by: Emma Lunn
26/02/2021
According to HMRC, nearly £73bn has been lent to support businesses through the pandemic, with almost 1.6 million businesses seeking help through government-backed coronavirus lending schemes.

Almost 29,500 Bounce Back Loans have been approved over the past month, bringing the total number of small enterprises to access the scheme to more than 1.5 million since it launched in May last year.

More than £45.5bn has now been lent through the scheme. These totals include businesses which have opted to ‘top-up’ their Bounce Back Loans to the full £50,000, or a maximum of 25% of their turnover if lower, available through the scheme.

The Coronavirus Business Interruption Loan Scheme (CBILS) has provided finance to almost 92,500 businesses, while nearly £5.3bn has been lent to more than 700 businesses through the Coronavirus Large Business Interruption Loan Scheme (CLBILS).

Almost 92,500 businesses have accessed £22bn through CBILS, whilst more than 700 larger firms have utilised the CLBILS, which has provided almost £5.3bn in support.

In total, the UK banking and finance industry has supported about 27% of British businesses through the government-backed coronavirus lending schemes, almost a year since the schemes were first put in place.

Stephen Pegge, managing director of commercial finance at UK Finance, said: “The UK’s banking and finance industry has continued to provide unprecedented levels of support to help businesses through the pandemic. The sector has delivered almost £73bn in financial assistance to nearly 1.6 million businesses through the government-backed loan schemes since they were put in place last year.

“The newly outlined plans to ease lockdown restrictions mean many businesses are beginning to see a light at the end of the tunnel. However, as the pandemic continues to cause significant economic uncertainty, many individual businesses and some specific sectors are facing extended disruption and may find themselves in financial difficulty in 2021.

“With widespread restructuring and recovery situations expected, the finance sector and related professional services are focused on the provision of capacity and expertise to help support the turnaround of companies where possible, while ensuring the sympathetic treatment of those businesses which are no longer viable.”

Chancellor Rishi Sunak is set to shake up the government’s Covid loan programme in next week’s Budget. He is rumoured to be planning to close the Bounce Back Loan Scheme at the end of March, while the Coronavirus Large Business Interruption Loan Scheme (CLBILS) for big firms is also likely to be shut.

There are 0 Comment(s)

If you wish to comment without signing in, click your cursor in the top box and tick the 'Sign in as a guest' box at the bottom.

Everything you wanted to know about ISAs…but were afraid to ask

The new tax year is less than a fortnight away and for ISA savers or investors, it’s hugely important. If yo...

Your right to a refund if travel is affected by train strikes

There have been a wave of train strikes in the past six months, and for anyone travelling today Friday 3 Febru...

Could you save money with a social broadband tariff?

Two-thirds of low-income households are unaware they could be saving on broadband, according to Uswitch.

What will happen if rates change

How your finances will be impacted by a rise in interest rates.

Regular Savings Calculator

Small regular contributions can build up nicely over time.

Online Savings Calculator

Work out how your online savings can build over time.

DIY investors: 10 common mistakes to avoid

For those without the help and experience of an adviser, here are 10 common DIY investor mistakes to avoid.

Mortgage down-valuations: Tips to avoid pulling out of a house sale

Down-valuations are on the rise. So, what does it mean for home buyers, and what can you do?

Five tips for surviving a bear market mauling

The S&P 500 has slipped into bear market territory and for UK investors, the FTSE 250 is also on the edge. Her...

Money Tips of the Week