Lenders supporting 1.23 million businesses across the UK through Covid-19 support schemes

  • HM Treasury figures published today reveal that over 1.23 million businesses in the UK have now been supported by lenders through government-backed coronavirus lending schemes.
  • 1.17 million small and micro businesses have accessed a loan through the Bounce Back Loan Scheme (BBLS) to help support them through the pandemic. 
  • Over 60,400 businesses impacted by Covid-19 have been approved for Coronavirus Business Interruption Loan Scheme (CBILS) packages, worth £13.7 billion.
  • 516 larger businesses are now backed by the Coronavirus Large Business Interruption Loan Scheme (CLBILS).

Despite the broad availability of additional financing, research commissioned by UK Finance members has shown that businesses are wary of drawing on additional credit largely due to ongoing economic uncertainty, with fewer than half of SMEs happy to borrow to grow or get through the pandemic.

Responding to the latest HM Treasury figures on Covid-19 support for businesses, Managing Director of Commercial Finance at UK Finance, Stephen Pegge, said:

The UK's banking and finance industry remains committed to supporting the nation's businesses through these challenging times.

 ?The Bounce Back Loan scheme (BBLS) continues to be a vital element of the industry's support package, supporting 1.17 million small and micro businesses across the UK.

 ?The Coronavirus Business Interruption Loan Scheme (CBILS) has also seen continued demand from impacted businesses, with over 60,409 businesses now supported through the scheme.

 ?The government-backed coronavirus lending schemes operate alongside commercial lending, capital repayment holidays, extended overdrafts and invoice finance facilities. They are just one element of the broader strategy for supporting the nation's enterprises.

?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.

The British Business Bank has this week announced that lenders will have two months from the deadline for September 30 to process and approve applications under the CBIL scheme. This update provides welcome clarity for businesses and should help give more firms the chance to access the finance they need.

Research published by BVA-BDRC as part of the quarterly SME Finance Monitor has demonstrated that overall caution around additional financing remains due to ongoing economic uncertainty, with slightly fewer than half of SMEs (45%) happy to borrow either to grow (31%) or to get through the pandemic (33%). Lenders are committed to supporting viable businesses through the pandemic and are well placed to assist all businesses looking for support.

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)

DC Electronics Motorsport - Essex

DC Electronics Motorsport, a supplier of custom-built electrical systems to the professional motorsport industry, secured a £50,000 CBILS loan from Barclays to restructure its business for the future and to use its technical expertise to help support the fight against Covid-19.

Jon Chambers Windows - Norfolk

Barclays provided the business with a £30,000 CBILS facility when the company was forced to close its operations due to the lockdown in March. As a result, the business decided to furlough some workers and use the additional financing to adapt to the challenging new conditions. The business has now reopened.

Bounce Back Loan Scheme (BBLS)

Drink Eat Sleep - Peak District

Drink Eat Sleep, a group of three pubs in the Peak District, including the historic Ladybower Inn, was able to use a BBLS loan from Barclays to re-open following lockdown. The funding also helped to ease the business? cash flow pressures and allowed it to retain all of its 55 staff.

Furzeligh Mill - Buckfast

A hotel in a 16th century converted mill was able to re-open its doors following a full refurbishment completed with £50,000 of BBLS support from NatWest. The owners had started renovating the site in February, but required additional financing when lockdown caused a substantial drop in revenue.

Other Lending

Allan Munro - Scotland

Allan Munro, a family-owned property developer working on residential developments in the Cairngorms National Park, used a development loan and CGFI funding from Lloyds Bank to install a biomass heating system on its most recent site.

Compare and Recycle - Maidstone

A phone recycling and comparison website in Maidstone used financing from Lloyds Bank to purchase additional property and expand its premises.

Sri Guru Singh Sabha (Community Centre and Youth Club) - Northampton

This Northampton Community Centre utilised an £800,000 non-CBILS loan and capital repayment holiday from Lloyds Bank to support the construction of its new site and to secure the delivery and provision of services for the local community.

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 for CBILS, CLBILS and BBLS show cumulative applications and approvals up to close of business on 9 August by accredited lenders, as reported to HM Treasury by close of business 10 August 2020. Previous UK Finance data publications on lending under the CBIL scheme were based on data submitted by UK Finance members only. For further details please contact the HMT press office on <a href="mailto:pressoffice@hmtreasury.gov.uk">pressoffice@hmtreasury.gov.uk</a>…;
<li>The banking and finance industry has put in place a clear plan to help Britain through</li>
</ol><ul><li>1.9 million <a href="https://eur01.safelinks.protection.outlook.com/?url=https%3A%2F%2F74n5c… payment deferrals</a></li>
<li><a href="https://eur01.safelinks.protection.outlook.com/?url=https%3A%2F%2Fwww.u… million interest-free overdrafts</a> offered, 1.05 million payment deferrals on credit cards and 707,000 payment deferrals on personal loans</li>
<li>£52.6 billion of lending to 1.23 million 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…; contactless payments</a></li>
</ul><ol><li>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 CLBIL 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<strong>.</strong></li>