Covid-19 support schemes back nearly 1.5 million businesses across the UK

• HM Treasury figures published today reveal that nearly 1.5 million businesses in the UK are supported through government-backed coronavirus lending schemes.
• The Bounce Back Loan Scheme (BBLS) supports almost 1.4 million small and micro businesses affected by the pandemic - many of which now have the option of ‘topping up’ existing facilities following the Scheme extension.
• The Coronavirus Business Interruption Loan Scheme (CBILS) has backed over 77,900 businesses with financing since launching in March 2020.
• 658 larger businesses have been supported by the Coronavirus Large Business Interruption Loan Scheme (CLBILS).

HM Treasury figures published today reveal that nearly 1.5 million businesses across the country are now supported by the UK's banking and finance industry with a total of £65.5 billion in lending through government-backed Coronavirus lending schemes.

Almost 1.4 million smaller businesses have now accessed financing as part of the Bounce Back Loan Scheme, with over 61,000 enterprises securing loans through the scheme in the past month. These figures include businesses which have ‘topped up’ their Bounce Back Loans to the full £50,000, or a maximum of 25 per cent of their turnover if lower, available as part of the scheme. This option was announced when the Government extended the coronavirus lending schemes.

Lenders have also approved over 77,900 facilities through the CBIL Scheme, whilst the Coronavirus Large Business Interruption Loan Scheme has allowed 658 firms to access over £4.8 billion worth of support.

There are 28 lenders accredited to the BBL Scheme, with the vast majority of businesses having an existing relationship with one of these firms. 111 lenders are accredited to the CBIL scheme.

Government-backed loans are just one part of the industry’s plan to support businesses across the UK. Lenders continue to provide a range of additional measures, including working capital extensions, overdraft extensions and capital repayment holidays.

Stephen Pegge, Managing Director of Commercial Finance at UK Finance, said:

 The UK’s banking and finance industry continues to back businesses across the country to get them through these challenging times.

“Nearly 1.5 million businesses are already supported by a Government-backed loan scheme. Around 99 per cent of SMEs with a business bank account are with a provider that offers Bounce Back Loans, while bank staff continue to work incredibly hard to process applications to meet high levels of demand, while carrying out necessary anti-fraud and money laundering checks on all applications.

“Following the extension of the coronavirus lending schemes, SMEs can now 'top up' their Bounce Back Loan to the maximum value of £50,000, or if lower, 25 per cent of the turnover they declared when they first applied. Businesses are encouraged to contact their lender if they wish to access these additional funds from their existing loan.

 “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

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)

Celtic Holiday Parks - Pembrokeshire

Celtic Holiday Parks, a luxury holiday park group, secured a six-figure finance package from HSBC UK to add more than 50 new holiday homes to its collection as demand for stay-cations continued to rise due to COVID-19 travel restrictions.

Other Lending

Raisco - County Durham

Raisco, a leading steel fabrication firm, secured an £805,000 loan from HSBC UK which enabled the business to take ownership of its premises, securing its long-term future. The purchase will allow Raisco to grow by accessing and developing additional space that was previously commercially unviable.

McKernan Homes - Cumbernauld

McKernan Homes, a bespoke housebuilder in Scotland, secured a £1.5 million funding package from Lloyds Bank - comprising a development loan and Clean Growth Initiative funding. The financing is being used to support a housing development in Airdrie.

Cavan Vets - West Midlands

A six-figure commercial loan from Lloyds Bank helped Cavan Vets move premises, and refurbish their new site to incorporate an animal hospital.

Bubble T Cosmetics - London

Bubble T Cosmetics, a supplier of bath bombs, moisturisers and hand sanitisers to retailers including Next, Superdrug and Miss Selfridge, secured a £400,000 working capital facility with Lloyds Bank. The financing has helped the business meet the rise in demand for self-care products during the pandemic.