UK lenders support over 1.2m businesses under lockdown

By Aisling Finn on Wednesday 12 August 2020

Alternative Lending

The Bounce Back Loan scheme remains the most popular financing option for the UK’s SMEs.

UK lenders support over 1.2m businesses under lockdown
Image source: Stephen Pegge/UK Finance

UK’s lenders helped support over 1.2m businesses through government-backed loan schemes, figures published by HM Treasury show. 

Since its launch, the 100-per-cent-government backed Bounce Back Loan Scheme (BBLS) has been the most popular with the nation’s SMEs. 

In total, over 1.16m SMEs have accessed funding through the BBLS, with the number continuing to creep up every week. 

The UK’s smallest businesses have received nearly £35bn in loans from banks and non-bank lenders. 

Under the Coronavirus Business Interruption Loan Scheme (CBILS) over 59,000 businesses have been given more than £13.4bn in loans 

The Coronavirus Large Business Interruption Loan Scheme remains the least popular government-backed programme, with only 497 businesses accessing £3.4bn in funding.  

Stephen Pegge, managing director of commercial finance at UK Finance, said: “As the economic effects of the pandemic continue to develop, the UK’s banking and finance industry remains committed to helping the nation’s businesses through the crisis.” 

“The government-backed loan schemes are just one part of the industry’s broader plan for helping the nation’s businesses, and operate alongside commercial lending, capital repayment holidays, extended overdrafts and invoice finance facilities.” 

The Bounce Back Loan Scheme will remain open until early November 2020, while the CBILS will close to new applications next month. 

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