The latest HM Treasury figures reveal that over 1.23m businesses in the UK have now been supported by lenders through government-backed coronavirus lending schemes.
17m small and micro businesses have accessed a loan through the Bounce Back Loan Scheme (BBLS) to help support them through the pandemic.
Over 60,400 businesses impacted by Covid-19 have been approved for Coronavirus Business Interruption Loan Scheme (CBILS) packages, worth £13.7bn.
516 larger businesses are now backed by the Coronavirus Large Business Interruption Loan Scheme (CLBILS).
Despite the broad availability of additional financing, research commissioned by UK Finance members has shown that businesses are wary of drawing on additional credit largely due to ongoing economic uncertainty, with fewer than half of SMEs happy to borrow to grow or get through the pandemic.
The British Business Bank has this week announced that lenders will have two months from the deadline for September 30 to process and approve applications under the CBIL scheme.
Stephen Pegge, managing director of commercial finance at UK Finance said, “The UK’s banking and finance industry remains committed to supporting the nation’s businesses through these challenging times.
“The Bounce Back Loan scheme (BBLS) continues to be a vital element of the industry’s support package, supporting nearly 1.23m small and micro businesses across the UK.
“The Coronavirus Business Interruption Loan Scheme (CBILS) has also seen continued demand from impacted businesses, with over 60,409 businesses now supported through the scheme.
“The government-backed coronavirus lending schemes operate alongside commercial lending, capital repayment holidays, extended overdrafts and invoice finance facilities. They are just one element of the broader strategy for supporting the nation’s enterprises.
“It is important to remember that any lending provided under government-backed schemes is a debt not a grant, and so firms should carefully consider their ability to repay before applying.”