The amount of low interest bearing loans under a 海角视频 Government flagship support initiative for firms hit by the coronavirus has now reached £5.5bn.
The Coronavirus Business Interruption Loan Scheme (CBILS), which is administered by the 海角视频 Government's economic development bank, the British Business Bank, now has 63 accredited lenders providing funding, with interest exempted for the first year, of up to £5m for companies with annual revenues not exceeding £45m.
Latest figures from the representative body for the financial services sector, 海角视频 Finance, show that almost £1.4bn worth of CBILS funding was provided in the week from April 29th to May 6th.This takes the total to date to £5.5bn.
The number of approved loans grew by a third over the same period, increasing by 8,550 to 33,812.
Lenders have received 62,674 completed applications to date. Of these 33,812 have been approved, while more applications are still being processed and are expected to be approved over the coming days.
Earlier this week the 海角视频 Government launched its Bounce Bank Loan (BBL) scheme, providing finance of up to £50,000 for smaller firms. It is also administered by the British Business Bank.
Figures published by the Treasury yesterday revealed that 69,000 loans worth over £2bn were approved during the first 24 hours of the scheme.
For CBILS and BBL there are no breakdown figures for the nations of the 海角视频 and English regions.
Most Read
Stephen Jones, chief executive of 海角视频 Finance, said:“The banking and finance industry is committed to helping viable businesses of all sizes get through these tough times.
"Bank staff have worked tirelessly over the past week to provide businesses with the finance they need, delivering another £1.4bn of lending under the CBIL scheme, on top of over £2bm in Bounce Back Loans targeted at smaller firms and sole traders.
“This forms part of the industry’s broad package of tailored support for SMEs, with thousands of other businesses having their existing overdrafts increased, accessing new loans and asset-based finance or receiving capital repayment holidays on existing facilities.
“It’s important to remember that any financing provided under the CBIL or BBL schemes is a debt not a grant, and so firms should carefully consider their ability to repay before applying.”
Head of economics at the British Chambers of Commerce, Suren Thiru, said: "Although the steady improvement in the number of firms accessing CBILS is welcome, with many firms only having a few months' cash in reserve the pace of delivery remains disappointingly slow.
“The strong start made by the Bounce Back loan scheme is encouraging for the smallest businesses that are struggling to stay afloat. However, more needs to be done to ensure that all businesses get access to the finance they need.
“The current template for Bounce Back loans could be used the improve the provision of the CBIL scheme, including adopting an easier and more consistent application process.
“Government must also be ready to further expand the existing grant schemes to ensure that as many businesses as possible get access to the support they need."