Figures published by HM Treasury today¹ reveal how the banking and finance sector is helping businesses of all sizes get through these tough times.

Lenders have approved £27.5 billion to more than 650,000 businesses so far through the three major government-backed lending schemes.

The industry is providing an unprecedented level of support to businesses across the United Kingdom in response to the Covid-19 crisis. In just two months since the launch of the first coronavirus loan scheme, lenders have approved over 650,000 facilities through the Bounce Back Loan Scheme (BBLS), the Coronavirus Business Interruption Loan Scheme (CBILS) and the Coronavirus Large Business Interruption Loan Scheme (CLBILS).

In the past week alone, more than £5.4 billion in lending has been provided to over 146,000 firms through government-backed lending schemes. This decisive action by lenders to support businesses affected by the coronavirus crisis is part of the industry's plan to get Britain through these challenging times.

The Bounce Back Loan scheme - aimed at sole traders and micro businesses - has seen £18.45 billion provided by lenders. £4.3 billion has been approved in the last week, an average of £615 million each day. The number of loans agreed through the scheme increased by over 143,000 to 608,000.

The industry has supported 43,000 businesses through the CBIL scheme with £8.2 billion in lending. 154 larger firms have received finance via the CLBIL scheme, totaling £820 million. Across the two schemes this is an increase of £1.1 billion over the past week, with more lending set to be approved over the coming days.

These government-backed schemes are just one part of the banking and finance sector's plan to help businesses get through these tough times, with the industry also providing working capital facilities, overdraft extensions, capital repayment holidays and asset-based finance.

Stephen Jones, Chief Executive of UK Finance, said:

The banking and finance industry has a clear plan to help businesses get through these tough times.

Lenders are providing an unprecedented level of support to firms affected by the Covid-19 crisis, with £27.5 billion being approved to over 650,000 businesses through government-backed lending schemes so far, and a further £20.5 billion drawn under bank arranged commercial paper facilities.

Businesses can also access a wide package of support measures as part of the industry's plan, including extended overdrafts, capital repayment holidays and asset-based finance.

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.

The British Business Bank accredited six more lenders for the CBIL scheme, giving firms a wide range of choice of more than 70 institutions from high street banks to alternative finance providers. As of yesterday, following changes announced by the government, businesses are now able to borrow up to £200 million under the CLBIL scheme.

Lending provided through any of the government-backed coronavirus lending schemes are debts not grants, and businesses have a legal commitment to make every effort to repay these loans. Before applying for a loan, firms should take into account their ability to make repayments, as failure to do so could impact their credit file.

Ends

Case studies

Bounce Back Loan

Wirral Driving School

The Wirral Driving School received a five-figure loan under the BBL scheme from Lloyds Bank to manage its cash flow. The business owner applied on the morning of the launch of the scheme and the money arrived in her account 24 hours later.

Ondine Restaurants Limited - Edinburgh

Ondine Restaurants Limited in Edinburgh received a loan through the BBL scheme from Barclays, helping the business to meet remaining overhead costs and pivot to fine-dining at home.

Coronavirus Business Interruption Loan

OPTIMAL-I LTD - events company in Weston-super-Mare

OPTIMAL-I LTD organises some of Europe's leading events in mental, behavioural and emotional health. As a direct result of the coronavirus outbreak, all events the company had arranged in the UK and Europe were cancelled. OPTIMAL-I LTD secured a loan of £72,000 from Santander UK through the Coronavirus Business Interruption Loan Scheme which will allow the business to bridge the loss of the events and to adapt how it delivers mental, behavioural and emotional support services during the outbreak.

Innovation Schoolwear - wholesale schoolwear supplier in London

Innovation Schoolwear is a family-run supplier of quality, affordable schoolwear in Tottenham with 30 full-time staff and almost 50 years of experience servicing the UK market. After Government guidance that non-essential businesses should not remain open, trading came to a halt at a time when it would usually start to gain momentum amid preparations for the ?Back to School? season. The company has agreed a £600,000 overdraft facility with Santander UK through the Coronavirus Business Interruption Loan Scheme to support the business during the coronavirus pandemic.

GearedApp - technology firm in Edinburgh

GearedApp received a £80,000 Coronavirus Business Interruption Loan from Starling Bank. The loan will be used as a safety net for the business in the coming months.

Lithe Audio - West Sussex

Lithe Audio supplies wireless Wi-fi and Bluetooth ceiling speakers, garden speakers, TV mounts and accessories. The products are all designed in the UK, and the company is looking to expand its international reach across Europe, Asia, North America and Australia. The company has received financial support from Santander UK through the Coronavirus Business Interruption Loan Scheme, and the funding will enable the business to continue to grow through product development and marketing.

Aquinna Homes - housebuilding company in Beaconsfield

Aquinna Homes, a regional housebuilding company based in Beaconsfield which owns developments across the South East, received a multimillion pound loan under the CIBL scheme from Lloyds Bank. The loan is being used to cover employee salaries and other business costs while ensuring the firm has the cashflow it needs to get this difficult period.

P&S Electrical (South East) Limited - East Sussex

P&S Electrical (South East) Limited a firm based in St Leonards-on-Sea, East Sussex specialising in statutory and mandatory electrical testing and inspection received a CBILS loan through Barclays. The funding means they were able to dedicate resources to keep servicing their contracts with schools and other public buildings. Additionally, it's meant that they are able to keep supporting their work force.

Aticus Law - Wilmslow and London

Aticus Law, a solicitors specialising in commercial and private matters based in Wilmslow and London, received a CBILS loan through Barclays, supporting the firm with cash flow and staff salaries

Other lending

Bowsers Solicitors - Cambrideshire

Bowser Solicitors in Wisbech, Cambridgshire received a six figure overdraft extension from Lloyds Bank. This will not only allow Bowsers to pay staff wages, but also support cash flow and the day-to-day running of the business.

Joules - UK wide

Joules, a British clothing company which sells clothing and homeware products inspired by British country lifestyles, has secured £15 million in funding from Barclays to extend its revolving credit facility.

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