By Aisling Finn on Tuesday 9 June 2020
Lending has slowed for the second week in a row and so have the rate of applications to the schemes.
The UK’s financial institutions have lent out over £34.9bn to SMEs under the government-backed coronavirus loan schemes.
The rate of lending has slowed for the second week in a row, with just under £3.6bn more being lent out than last week, compared to £4bn the week before.
Bounce Back Loans (BBLS) are still the most popular scheme, with over £23.7bn dished out by UK lenders, a jump of nearly £2.5bn from the week before.
Coronavirus Business Interruption Loans (CBILS) are trailing behind with just over £9.5bn lent out, a small increase of only £640m in the week beginning 1 June 2020.
The offering for larger businesses, the Coronavirus Large Business Interruption Loan Scheme (CLBILS) is still by far the least popular government-backed loan scheme, with only £1.57bn being given out in total.
Bounce Back Loan acceptance rate remains the highest of the loans on offer, sitting at just over 81 per cent.
CBILS has a 51 per cent acceptance rate, followed by CLBILS which has just under a 40 per cent acceptance rate, a marked increase from the previous week’s figure of just under 33 per cent.
As well as lending slowing, the number of applications pouring in has also dropped slightly.
Last week there were just over 91,000 applications to the Bounce Back scheme, compared to over 104,000 in the week beginning 31 May 2020.
CBILS saw just over 3,500 applications compared to 5,000 the week before and CLBILS had 36 applications down from 77 the week previous.
For the second week in a row, HM Treasury also released the Future Fund figures and for the first time the value of loans approved under the fledgeling scheme.
To date, there have been 533 applications to the fund aimed at companies that can’t access the other government-backed schemes on offer.
Of those 533 applications, only 53 have been approved, an acceptance rate just shy of 10 per cent, and the value of convertible loans dished out comes to just under £56m.