By Aisling Finn on Wednesday 27 May 2020
The Bounce Back Loan Scheme still remains the most popular, with now more than double lent out under the scheme compared to CBILS.
The amount lent out to UK businesses by both banks and non-bank lenders has reached nearly £27.5bn, an increase of £5.44bn from last week.
Bounce Back Loans (BBL) are still proving to be the most popular government-backed loan, with lenders having dished out well over double that of the Coronavirus Business Interruption Loan Scheme (CBILS).
Lenders have handed out £18.49bn in Bounce Back Loans, a jump of £4.31bn from the previous week.
CBILS loans are trailing behind, with lenders having now dished out £8.15bn, an increase of just £900m from the week before.
The government-backed loans for the UK’s largest businesses are falling even further behind with only £820m lent out under the Coronavirus Large Business Interruption Loan Scheme (CLBILS) in total, despite the government increasing the loan size from £50m to £200m.
In the past week alone, the number of new applications to the BBL scheme increased by over 187,000, compared to just under 3,500 applications to the CBILS programme and only six to the CLBILS scheme.
To date, there have been over 769,000 applications to the BBL scheme and just over 608,000 of those applications have been approved.
BBL approvals still sit at about 80 per cent, while CBILS approvals are much lower with only a 50 per cent acceptance rate.
The CLBILS sits even further behind with a dismal 30.6 per cent acceptance rate, last week the approval rate sat at only 17 per cent, making it the only initiative to have increased its approval rating.
Across all government-backed loans, the rate of lending has now slowed considerably with lenders having dished out £1.75bn less than the previous week of 17 May.
Despite its popularity, the Bounce Back Loan scheme has not been without a hiccup or two.
And Starling came under fire for preventing new sole trader accounts from being opened on 14 May 2020 due to “record demand.”