£2.8 billion provided to SMEs through Coronavirus lending scheme

The banking and finance sector has provided over £2.8 billion of lending to SMEs so far through the Coronavirus Business Interruption Loan Scheme (CBILS), as part of a broad package of support for UK businesses, according to the latest data1 published by UK Finance.

Total lending under CBILS has doubled in the week from 14 April to 21 April, with an increase of £1.45 billion. Over 9,000 loans have been provided in the same period, with the total number approved increasing by almost 120 per cent to over 16,600.

Lenders have received over 36,000 completed applications2 so far. 16,624 of these applications have been approved to date, while others are still being processed and may be approved over the coming days.

Bank staff are working hard to help viable businesses access the support they need to get them through these challenging times. Over half the total number of loans provided through CBILS have been approved in the past eight days alone.

In addition to the finance being made available through CBILS, lenders continue to provide capital repayment holidays, overdrafts and working capital extensions to help businesses manage their costs where these arrangements are appropriate.

The industry has also taken steps to give additional support to those businesses who are furloughing their employees. Where possible, lenders will look to provide support to firms that have successfully applied for the Coronavirus Job Retention Scheme to help them manage their cashflow while they await receipt of a grant from the scheme.

Stephen Jones, Chief Executive of UK Finance, said:

The banking and finance sector understands the critical role we have in helping businesses through these tough times.

?Frontline staff have been working tirelessly to get money to those viable businesses that need it as quickly as possible, with over £2.8 billion of lending provided to 16,000 firms so far. This lending forms part of a broad package of support provided to SMEs including additional loans, capital repayment holidays, extended overdrafts and asset-based finance.

?We know businesses want to look after their most important resource - their people - and so lenders are offering additional support to firms awaiting grants from the Coronavirus Job Retention Scheme.

?We stand ready to support many more businesses in the weeks ahead, and will continue to work closely with the government to ensure businesses can access the support they need.


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

Battersea Spanish  

A Spanish language and cultural centre in Battersea received an £80,000 loan from HSBC UK through the CBIL scheme. This has allowed the business to find alternative ways to provide its 12 instructors with continued work and keep its 500 students engaged from home. With the loan in place, the school has been able to pay six months? rental deposit on its new premises and cover the moving and fit-out costs. The loan will also guarantee staff wages and business expenses for the next three months and includes £10,000 for its website redesign, allowing the business to invest in new technology to support the delivery of online learning and virtual classes. 

Bay Productions 

A Cardiff-based set production company for West End theatre received a six-figure loan from Lloyds Banking Group through the CBIL scheme to support the firm's cashflow while it is unable to operate during the Covid-19 outbreak. 

Beech Hill Hotel & Spa 

A hotel located on Lake Windermere, Cumbria, Beech Hill Hotel & Spa has borrowed £200k from Barclays through CBILS. The loan will allow the business to access working capital to fund its core business costs during the closed period. This additional cash will allow the business to protect its workforce and ensure the hotel can pay suppliers, many of whom are local businesses. 

Ducati Manchester 

The largest Ducati dealer in the UK, this Manchester-based company has arranged a £200k overdraft through CBILS with Santander UK. The coronavirus pandemic, and the resulting social distancing measures introduced by the Government, have suppressed Ducati Manchester's ability to trade. However, a capital repayment holiday and the new overdraft through CBILS will help it continue to pay its ongoing costs throughout the duration of the UK lockdown.  

Noah's Ark Zoo 

Based in Somerset, Noah's Ark Zoo was provided with a £300k regular business loan by Lloyds Banking Group, to fund a skeleton staff of 20 specialist keepers to look after the animals through the lockdown period. 

Stranger Thoughts Limited 

A creative agency based in Bristol, Strange Thoughts Limited has received a £250k loan from NatWest through the CBILS scheme. The finance will enable the business to keep operating and retain staff for areas of the business that are able to operate during this time, while other staff in the business are furloughed. It will also allow the business to scenario plan for the short term so that it can get up and running within 2-3 weeks. 

Area of expertise:

Notes to editor

<p>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.</p>
<ol start="1" type="1"><li>
The latest figures provided refer to the number of loans provided and applications received by close of play on Tuesday 21 April 2020.  Full data on lending under CBILS is available on the UK Finance website <a href="https://www.ukfinance.org.uk/sites/default/files/uploads/Data%20(XLS%20…;
This figure includes approved applications, those applications that are still be processed, applications that have been declined and those applications that may turn out not to be eligible or cases where customers will decide not to proceed. Data on the total number of applications has been revised from 21 April onwards to include only those applications that have been completed. Previous data included partial applications where a business did not then go on to complete and submit. We believe this updated data provides a more accurate picture of applications made.</li>
UK Finance will release CBILS data on its website every Thursday at 0930hrs.</li>
More information on CBILS is available here: <a href="https://www.ukfinance.org.uk/coronavirus-business-interruption-loan-sch…;  </li>
Businesses do not need to contact the British Business Bank to access this scheme. However, they may find some of the British Business Bank?s information on the scheme useful. This can be found <a href="https://www.british-business-bank.co.uk/ourpartners/coronavirus-busines…;
All lenders are providing guidance on the best way to access support on their websites. This information is being updated regularly to provide businesses with guidance and to help them access the finance they need.</li>
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 <a href="https://www.gov.uk/government/news/government-launches-new-coronavirus-…;