Over one million UK businesses supported under Covid-19 lending schemes

  • Over one million businesses have now been supported through the three government-backed coronavirus lending schemes
  • The number of facilities approved is 14 times higher than the average quarterly total of loans and overdrafts provided to SMEs in previous years

The banking and finance industry has supported more than one million businesses through the three government-backed lending schemes in just over three months, figures published by HM Treasury today have revealed.1

Almost 1.02 million facilities worth £42.9 billion have been approved through the Coronavirus Businesses Interruption Loans Scheme (CBILS), Bounce Back Loan Scheme (BBLS) and Coronavirus Large Business Interruption Loan Scheme (CLBILS).

The support demonstrates the significant steps taken by lenders to make sure viable businesses of all sizes have access to the support they need to get through these challenging times.

To put the one million milestone in context, in the past five years the ten largest banking groups have approved an average of 275,000 loans and overdrafts each year to UK SMEs, equivalent to 70,000 facilities every three months.2 The one million government-backed facilities approved over three months is around 14 times higher than this quarterly average, as lenders work hard to meet unprecedented demand for finance from SMEs.

Bounce Back Loans have had continued success, with £29.5 billion having been approved so far, reaching 967,000 businesses. Just over 46,000 businesses have been provided finance this week worth £1.4 billion.

In just over three months since it was introduced, the banking and finance industry has approved 52,000 facilities through the CBIL scheme, totaling £11.1 billion.

The CLBIL scheme, designed for the UK's larger businesses, has seen 359 firms receive £2.3 billion over the period.

These figures come after recent research for UK Finance by BVA BDRC revealed that almost 90 per cent of SMEs have had their applications for a Bounce Bank Loan (BBL) or Coronavirus Business Interruption Loan (CBILS) facility approved where a final decision has been made.3

Today's figures mean that one in six of the UK's 5.9 million private sector businesses4 have received support from lenders through one of the three government-backed coronavirus lending schemes. The banking and finance industry is also providing businesses with other forms of support including working capital extensions, overdraft extensions and capital repayment deferrals, as part of its plan to help firms of all sizes get through the crisis.

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

These figures shine a light on the unprecedented levels of support from lenders to help get businesses through these challenging times.

?The fact that over one million businesses are receiving support through the coronavirus loan schemes is a credit to bank staff up and down the country who have worked tirelessly to get finance to those who need it.

?Almost £43 billion has now been approved through these schemes, in addition to the industry's broad package of support for businesses including overdraft extensions and capital repayment deferrals.

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

Case studies

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

Daish's Holidays - Bournemouth

Daish's Holidays, established 40 years ago, is a family owned and operated holiday company with hotels located in popular coastal and tourist destinations. The firm received support and working capital from Barclays under the CBIL scheme, allowing it to prepare for re-opening when the current restrictions on movement are lifted.

Dorothy House, South West 

Dorothy House which operates hospices and shops across the South West of England received a loan through the CBIL scheme. The loan from HSBC has helped the charity maintain its cash flow in order to support the influx of people needing support during the pandemic. 

Karas Plating - Leigh

Metal finishing specialist, Kara Plating received a loan from Barclays as part of the CBIL scheme to help it maintain operations during pandemic. Based in Leigh, the manufacturing company has been plating urgent parts needed for ventilators and continuous supply of other crucial parts needed in power generation sectors and food manufacturing. 

Retail Merchandising Services - Newport, Wales

Retail Merchandising Services is a family-run business based in Newport, Wales, that provides services to major retailers. This has included helping set up pop-up supermarkets near NHS Nightingale Hospitals. The business received a loan from Lloyds Bank under the CBIL scheme, easing cashflow issues and enabling it to get back up and running on projects post-lockdown.

Topping & Company - across UK

Topping & Company is an independent bookseller with stores in Ely, Bath, Edinburgh and St Andrews. The company received a loan from Lloyds Bank under the CBIL scheme, enabling it to keep paying for stock to sell online while its stores were closed.

Bounce Back Loan

Barmouth Beach Club - Barmouth, Wales 

Operating off the north west coast of Wales, Barmouth Beach Club provides fully accessible holiday accommodation for disabled people, their parents and carers. The business received a BB loan from Barclays which has helped it through these few months to prepare to host families in the future. 

Black Art Graphics - Bembridge, Isle of Wight 

Black Art Graphics based on the Isle of Wight received a bounce back loan from HSBC to enable it to diversify its offer and provide much needed PPE to local hospitals and care homes. The loan enabled the business to purchase materials and additional equipment needed to produce laser-cut visors. 

Other lending and support

Beer52 - Edinburgh

Beer 52 is a craft beer subscription company based in Edinburgh. The business received additional support from RBS in the form of a substantial overdraft, helping it to continue to operate and meet an unprecedented surge in customer demand during lockdown. As suppliers were forced to update credit terms, requiring an up-front payment for stock, the additional funding helped the company play its part in keeping the supply chain moving.

Berry Gardens, Maidstone Kent

Berry Garden based in Kent has received a loan via HSBC's green finance initiative. The finance has helped the sustainable fruit producer to install an energy system to help reduce its carbon footprint. 

Mayfield Eggs - Oxfordshire

Mayfield Eggs, a family-owned free range egg farm in Oxfordshire, has received funding from the Lloyds Bank Clean Growth Financing Initiative. The funding has enabled investment in new machinery and supported a pivot in business model to egg home deliveries during the lockdown.

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>
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 28 June 2020 by accredited lenders, as reported to HM Treasury by close of business 29 June 2020. 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 5 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">
Full details of the survey by BVA BDRC of 1,200 UK businesses can be found <a href="https://eur01.safelinks.protection.outlook.com/?url=https%3A%2F%2F74n5c…;. </li>
<li value="4">
The latest <a href="https://eur01.safelinks.protection.outlook.com/?url=https%3A%2F%2F74n5c… figures</a> show there were 5.9 million private sector businesses at the start of 2019.</li>
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The banking and finance industry has put in place a clear plan to help Britain through:</li>
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1.9 million <a href="https://eur01.safelinks.protection.outlook.com/?url=https%3A%2F%2F74n5c… payment deferrals</a></li>
27 million <a href="https://eur01.safelinks.protection.outlook.com/?url=https%3A%2F%2F74n5c… overdrafts</a> offered, 961,700 payment deferrals on credit cards and 688,900 payment deferrals on personal loans.</li>
£42.9 billion of lending to over one million businesses through government Covid-19 lending schemes</li>
Protecting customers from <a href="https://eur01.safelinks.protection.outlook.com/?url=https%3A%2F%2F74n5c… and fraud</a></li>
Higher limit for <a href="https://eur01.safelinks.protection.outlook.com/?url=https%3A%2F%2F74n5c… payments</a> </li>
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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…;
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>