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Businesses borrow £22bn from government schemes

by LLB Reporter
19th May 20 2:50 pm

The government backed coronavirus schemes to help small businesses has seen banks funnel more than £22bn since the scheme was launched.

Eight million people have been furloughed under the Treasury’s job retention scheme which has cost £11.1bn to date to help keep staff on payroll.

The Treasury said that £6.1bn has been claimed by 2m people who are self-employed.

The Chancellor Rishi Sunak said, “Our plan to support businesses and individuals is one of the most comprehensive in the world.

“As these figures show, we are currently supporting millions of workers and businesses through these tough times so we can recover as quickly as possible.”

The government’s bounce back scheme which was launched on 4 May has seen banks approve £14.2bn in loans to almost 465,000 businesses across the country.

Barclays Bank has facilitated a total of £14.4bn into the economy through the government schemes since they were introduced.

Barclays told LondonLovesBusiness that they have approved 104,444 Bounce Back Loans (BBLS), amounting to £3.2bn, which accounts to almost  23% of all BBLS funding, more than most other banks.

The bank approved 6,764 CBILS with a value of £1.4bn, and for larger companies they have approved £1.4bn to 24 companies who applied for the Coronavirus Large Business Interruptions Loan Scheme (CLBILS).

CBILS are backed to 80% by the government, and all banks will have to conduct checks on borrowers, a total £7.3bn across all banks has been funnelled.

Companies who applied for the Covid Corporate Financing Facility (CCFF), a staggering £9.8bn of commercial paper issuance for clients, representing 48% of total funding under the scheme, or 48% of total BoE CCFF funding as of Thursday 14 May.

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