• 66,300 businesses in the country 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 Scotland was 21,700 over the past five years

The banking and finance industry has provided £2.4 billion to businesses across Scotland to help them get through the Covid-19 crisis, figures from HM Treasury reveal.¹

As of 2 August, 66,300 firms in Scotland 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 country 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 21,700 loans and overdrafts to SMEs each year across Scotland in the past five years.⁵

In just over three months since the launch of the scheme, 63,600 businesses in the country have received a Bounce Back Loan, with the total value of support reaching £1.8 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 £580 million to 2,700 companies in Scotland through the CBIL scheme, which continues to offer a lifeline to firms across the country. 

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 Scotland including Beer52, a craft beer subscription firm based in Edinburgh. Funding support from NatWest allowed the company to meet an unprecedented increase in demand, reaching a landmark 200,000 subscribers during lockdown. The additional financing was crucial as suppliers updated credit terms, helping Beer52 to play its part in keeping the supply chain moving.

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

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

?£2.4 billion has been approved to 66,300 businesses across the country 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

Chrysties - Hawick

Hawick-based furniture retailer Chrysties was able to reopen in the month of its 30th birthday and has been able to retain all 26 staff who had been furloughed after securing a £200,000 CBILS funding package from NatWest.

Topping & Company - Edinburgh

After securing a credit facility with Lloyds Bank via the CBIL scheme, Topping & Company, an independent bookseller with several stores across Scotland was able to continue to trade online while physical premises were closed.