COVID-19 Loans Scheme Provides Over £4 Billion To SMEs

According to a report posted by UK Finance today, the UK banking and finance sector has provided over £4.1 billion to SMEs so far through the Coronavirus Business Interruption Loan (CBIL) scheme, as part of a wide-ranged effort to provide support to help businesses through these tough times.

Also, the report reveals that over £1.33 billion of loans have been approved for release in the week from 21 April to 28 April 2020. The number of loans provided through the scheme is said to have increased by 8,638 over the same period, summing up an increase of over 50%.

Since the start of the Coronavirus Business Interruption Loan scheme, lenders have made over £4.1 billion available to small companies, with over £1.33 billion being provided in the week which begins on 21^st of April.

Figures recorded show that lenders received a total of 52,807 completed applications through the CBIL scheme so far. While some have been approved, others are still being processed and are expected to be approved over the coming days.

This support is being provided to SMEs to ensure they can meet their peculiar and urgent needs, including capital repayment holidays, overdrafts, working capital extensions and asset-based finance.

Recent reforms to the CBIL scheme by the Treasury and British Business Bank, supported by regulators, has caused lenders to alter requirements to focus more on information and data companies will be able to provide reasonably fast. This reforms are expected to streamline the application process and help lenders provide financing to businesses who need it as quickly as possible.

Stephen Jones, Chief Executive of UK Finance, said:  “The banking and finance sector recognises the role we must play in getting the country through these tough times, and staff are working incredibly hard to get money to those viable businesses that need it.”