Lenders back 750,000 businesses with more than £31 billion through Covid-19 loan schemes

Figures published by the Treasury today1 reveal how the banking and finance sector is helping businesses across the UK through these tough times.

So far, lenders have approved over £31.3 billion to over 745,000 businesses through government-backed schemes. In the past week alone, more than £3.8 billion in lending has been provided to 94,000 firms through these schemes. More applications have been received and are expected to be approved in the coming days.

This represents an unparalleled level of support from the industry. Since the launch of the first coronavirus support scheme in late March, over 745,000 facilities have been approved by lenders through the Bounce Back Loan Scheme (BBLS), the Coronavirus Business Interruption Loan Scheme (CBILS) and the Coronavirus Large Business Interruption Loan Scheme (CLBILS) in a little over two months. In comparison, an average of 275,000 loans and overdrafts were provided in total each year by the ten largest banking groups to UK SMEs over the past five years .2

As of 31 May, lenders have provided £21.3 billion through the Bounce Back Loan Scheme (BBLS), an increase of £2.8 billion over the past week. Over 91,000 applications were approved in the past week.

Lenders have approved £8.9 billion in support through the Coronavirus Business Interruption Loan Scheme (CBILS) to almost 46,000 businesses. This is an increase of over £750 million since data was last published.

More support has also been made available for larger and medium sized businesses in the UK through the Coronavirus Large Business Interruption Loan Scheme (CLBILS). The number of businesses that have received financial support increased by 191, totalling just over £1.1 billion.

These government-backed schemes are just part of the banking and finance sector's plan3 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. 

Stephen Jones, Chief Executive of UK Finance, said:

These figures show that the banking and finance sector is committed to playing its part in helping businesses across the UK through these tough times. 

?The amount of support available to firms affected by the Covid-19 crisis is unparalleled. Over £31 billion has been approved in government-backed lending schemes so far to almost 750,000 businesses, with a further £19 billion drawn under bank-arranged commercial paper facilities.

?But government-backed loans are not the only support the banking and finance sector has made available. Over the last few months, lenders have put in place a clear plan to support businesses in every region of the country, including through offering extended overdrafts, capital repayment holidays and asset-based finance to businesses that need support.

"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

Bounce Back Loan

Little Critters Brewing Company - Sheffield

The Sheffield-based microbrewery received a loan through the Bounce Back Loan Scheme from Barclays, which will allow the company to not only survive the pandemic, but also be in a stronger financial position to move forward post Covid-19.

Coronavirus Business Interruption Loan

Alternative Airlines - Surrey

Alternative Airlines, a fast growth travel tech business, secured a loan from Barclays through the CBIL Scheme. With customer enquiries remaining high, the loan will be used to pay staff salaries as a large tech team is required to maintain the website and innovate services for the future.

Charles Stamper - Edinburgh

Charles Stamper is a fruit and veg wholesaler supplying schools and the hospitality sector. Due to the pandemic, the business has pivoted to launch a delivery service to homes during lockdown. The six-figure loan from Lloyds through the CBIL Scheme will be used to pay suppliers and cover costs.

Task Contract Services - Newark

Task Contract Services, which operates as a subcontractor in the specialist cladding sector, has used a six-figure CBIL Scheme  loan from NatWest to safeguard the future of the business. The £250,000 finance package will assist with cash flow and employee wages, providing for the adverse impact of project site closures.

Rap Industries - Peterborough

Engineering firm Rap Industries received a loan through the CBIL scheme from Barclays to help the business support their team of 25 staff and help them to hit the ground running once the current lockdown is lifted. The funding has also enabled the business to fulfil contracts to support coronavirus medical efforts by providing a number of hospitals with partition screening.

Old Curiosity Distillery - Edinburgh

Old Curiosity Distillery, a family-owned gin distillery, has secured a £250,000 loan from Royal Bank of Scotland through the CBIL Scheme. The funding will provide the Edinburgh-based business, which currently employs 28 staff at its distillery and herb garden in the city's Pentland Hills, with essential cash flow - helping to secure jobs and protect the future viability of the company. The firm has adapted its business model to focus on the production of hand sanitiser.

West Group - South Hampshire

West Group is a manufacturing company involved in the production of ventilator parts for the NHS. The business received a package of support from Barclays through the CBIL Scheme and a trade finance facility which allowed them to maintain liquidity and support investment in crucial new contracts.

Other lending

Ministry of Furniture - Port Talbot

Ministry of Furniture is a designer and manufacturer of workspaces for schools, local authorities and offices. The business received a six-figure invoice finance facility from Lloyds which will help with the creation of a new range of acrylic protection screens.

For more information please call the UK Finance press office on 020 7416 6750 or email press@ukfinance.org.uk

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><li>HM Treasury data on lending under the CBIL, BBL and CLBIL schemes is available <a href="https://eur01.safelinks.protection.outlook.com/?url=https%3A%2F%2F74n5c…;. Figures show cumulative applications and approvals up to close of business on 31 May 2020 by accredited lenders, as reported to HM Treasury by close of business 1 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 <a href="mailto:pressoffice@hmtreasury.gov.uk">pressoffice@hmtreasury.gov.uk</a>… />
<li>UK Finance statistics show that the ten largest groups approved an annual average of 275,000 loans and overdrafts for SMEs of up to £25m turnover in the UK over the past five years. The data published by HM Treasury for government-backed lending schemes apply to a wider cohort of businesses, lenders and products.</li>
</ol><ol><li value="3">The banking and finance industry has put in place a clear plan to help Britain through:<br /><ul style="list-style-type:circle;"><li>1.8 million <a href="https://eur01.safelinks.protection.outlook.com/?url=https%3A%2F%2F74n5c… payment holidays</a></li>
<li>27 million <a href="https://eur01.safelinks.protection.outlook.com/?url=https%3A%2F%2F74n5c… overdrafts</a> offered and 877,800 credit card payment holidays</li>
<li>£31 billion of lending to nearly 750,000 businesses through government Covid-19 lending schemes</li>
<li>Protecting customers from <a href="https://eur01.safelinks.protection.outlook.com/?url=https%3A%2F%2F74n5c… and fraud</a></li>
<li>Higher limit for <a href="https://eur01.safelinks.protection.outlook.com/?url=https%3A%2F%2F74n5c… payments</a></li>
</ol><ol><li value="4">The Bank of England has <a href="https://eur01.safelinks.protection.outlook.com/?url=https%3A%2F%2F74n5c…; that the Covid Corporate Financing Facility (CCFF) has so far supported £19 billion of lending.</li>
</ol><ol><li value="5">UK Finance <a href="https://eur01.safelinks.protection.outlook.com/?url=https%3A%2F%2F74n5c…; 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.</li>
</ol><ol><li value="6">The British Business Bank (BBB) <a href="https://eur01.safelinks.protection.outlook.com/?url=https%3A%2F%2F74n5c…; four more lenders for accreditation under the CBIL scheme last week, bringing the total number of accredited lenders to 78. The total number of accredited lenders under the Bounce Back Loan Scheme is now 18, with the British Business Bank <a href="https://eur01.safelinks.protection.outlook.com/?url=https%3A%2F%2F74n5c…; one new lender last week. All lenders accredited under the CBIL scheme have been invited to join the BBL Scheme.</li>
</ol><ol><li value="7">More information on the CBIL scheme is available <a href="https://eur01.safelinks.protection.outlook.com/?url=https%3A%2F%2F74n5c…;. More information on the BBL scheme is available <a href="https://eur01.safelinks.protection.outlook.com/?url=https%3A%2F%2F74n5c…;. More information on the CLBILS scheme is available <a href="https://eur01.safelinks.protection.outlook.com/?url=https%3A%2F%2F74n5c… />
<li>The government?s <a href="https://eur01.safelinks.protection.outlook.com/?url=https%3A%2F%2F74n5c… finder?</a> 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.</li>
</ol><p> </p>