• 70,800 businesses in the region have had their applications approved for either the Bounce Back Loan Scheme or Coronavirus Businesses Interruption Loan Scheme
• Before the pandemic, the average number of loans and overdrafts approved each year to SMEs in the East Midlands was 14,000 over the past five years

The banking and finance industry has provided £2.75 billion to businesses across the East Midlands to help them get through the Covid-19 crisis, figures from HM Treasury reveal.¹

As of 2 August, 70,800 firms in the East Midlands have received support from their lender through either the Bounce Back Loan Scheme (BBLS) or Coronavirus Businesses Interruption Loan Scheme (CBILS). This means that 20 per cent of businesses in the region are backed by the banking and finance industry through a Covid-19 loan scheme.

Putting this unprecedented relief into context, the ten largest banking groups provided an average of just under 14,000 loans and overdrafts to SMEs each year across the East Midlands in the past five years.⁵

In just over three months since the launch of the scheme, 67,500 businesses in the region have received a Bounce Back Loan, with the total value of support reaching almost £2 billion. Aimed at small and micro businesses, these loans are 100 per cent government-backed and provide finance between £2,000 and £50,000.

Lenders have also provided finance worth £770 million to 3,300 companies in the East Midlands through the CBIL scheme, which continues to offer a lifeline to firms across the region. 

Supporting businesses of all sizes during these challenging and uncertain times remains lenders? top priority. Alongside the government-backed lending schemes, the industry has a broad range of additional measures for businesses whose finances continue to be squeezed, from working capital extensions, to overdraft extensions and capital repayment holidays.

The support has helped a range of businesses across the East Midlands including ESP Fitness in Loughborough - a designer and supplier of premium sports and fitness training facilities. The company was able to pivot its business to serve the consumer home fitness market, which saw demand for high-quality gym equipment rise rapidly. The business secured funding through the CBIL scheme from HSBC UK which has helped it purchase larger quantities of stock to meet the surge in demand.

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

Lenders understand that times are tough for businesses in the East Midlands, but the finance industry has a clear plan to help them get through this crisis.

?£2.75 billion has been approved to 70,800 businesses across the region through government-backed lending schemes, providing a life-line for many businesses hit by the economic shock created by Covid-19.

?Whether you?re a sole trader or a company with hundreds of employees, the banking and finance industry stands ready to offer the right support to suit your needs.

 ?Businesses should remember that any lending provided under government-backed schemes is a loan not a grant, and so should carefully consider their ability to repay before applying.

Case studies

Please find a selection of further 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

Giggling Squid - Warwick

Restaurant Giggling Squid received a CBILS loan from Barclays which will ensure the ongoing viability of the business through the pandemic and enable it to kick start its operations as the UK transitions out of lockdown.

Luxus - East Lincolnshire

The UK's largest independent plastics compounder and recycler secured funding from HSBC UK to help ensure job security for employees throughout the period - allowing it to sustain some operations and support in the production of coronavirus testing kits and PPE.