By Aisling Finn on Tuesday 23 June 2020
Lending under both the Bounce Back Loan and CBILS has slowed, while CLBILS has slightly increased.
The UK’s financial institutions have lent out £40.72bn under the three government-backed loan schemes for coronavirus-hit businesses.
Under the Bounce Back Loan Scheme (BBLS) just over £28bn has been handed out, more than two and a half times that of the Coronavirus Business Interruption Loan Scheme (CBILS).
Following a slight increase of lending last week, lending under the BBLS has slowed once more with only £1.75bn being handed out under the 100-per-cent-backed scheme.
For the fourth week in a row lending under CBILS has slowed, with £420m being lent out last week bringing the total dished out to just over £10.5bn.
Lending under the scheme on offer for the UK’s largest businesses, the Coronavirus Large Business Interruption Loan Scheme (CLBILS) picked up last week after lending had slowed.
Under CLBILS, a total of £2.1bn has been handed out, an increase of £330m from the week before.
The BBLS still has the highest approval rate, sitting at just under 82 per cent, whereas the approval rate for CBILS loans is only 51 per cent, with CLBILS trailing even further behind with a dismal 44 per cent approval rate.
HM Treasury has also released updated figures for the Future Fund, which is aimed at companies that can’t access the other government-backed schemes on offer.
To date, there have been 623 applications to the programme, with 252 convertible loans approved, a jump of 99 from the week previous.
The value of the 252 convertible loans is just more than £236m and several fintechs are currently raising under the Future Fund, including peer-to-peer lender Assetz Capital which is hoping to receive a slice of the £500m programme.
Of the 252 loans approved, 136 are for London-based companies, with the second highest distribution being in the South East, where 36 companies are based.