UK lenders dish out £4.1bn in CBILS loans

By Aisling Finn on Thursday 30 April 2020

Alternative Lending

As UK firms struggle for liquidity £1.33bn in loans was approved between 21 April 2020 and 28 April 2020.

UK lenders dish out £4.1bn in CBILS loans
Image source: Chancellor Rishi Sunak/The Treasury

UK lenders have now given out over £4.1bn to SMEs through the Coronavirus Business Interruption Loan Scheme (CBILS), according to the latest figures from UK Finance 

Since last week, the total number of loans approved through the scheme has increased by over 50 per cent from over 16,600 to over 25,200.

There have been nearly 53,000 applications to the government-backed scheme, meaning the approval rate is at just under 50 per cent. 

Just two weeks ago, the government had only approved 6,000 loans through CBILS.

The average amount dished out by the government has decreased from roughly £190,000 two weeks ago to under £165,000 now. 

Earlier this month the Chancellor faced calls from industry leaders to widen the current support on offer and to approve non-bank lenders to distribute loans, not just traditional banks.

Stephen Jones, chief executive of UK Finance, said: “The changes to the scheme announced by the Chancellor this week will enable lenders to streamline their application processes and help even more businesses access the support they need.”

“This extensive support will be complemented by the new Bounce Back Loans scheme targeted at smaller businesses, which lenders are now working at pace to get up and running from Monday,” he added.

Currently, Starling Bank, OakNorth and Funding Circle are some of the only CBILS accredited fintechs and can begin offering government-backed loans to companies in need once they are ready to do so.

Starling has also said it will participate in the Bounce Back Loan Scheme announced by the government on Monday.

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