UK Finance: Over 1.4 million businesses supported through Covid-19 lending schemes

Thursday, 22 October 2020 10:45

HM Treasury figures published today reveal that over 1.4 million businesses in the UK are supported through government-backed Coronavirus lending schemes. The Coronavirus Business Interruption Loan Scheme (CBILS) has backed over 73,000 businesses with financing packages since its launch in March. The Bounce Back Loan Scheme (BBLS) has supported over 1.3 million small and micro businesses affected by the pandemic. 623 larger businesses have been...Request free trial

HM Treasury figures published today reveal that over 1.4 million businesses in the UK are supported through government-backed Coronavirus lending schemes.
The Coronavirus Business Interruption Loan Scheme (CBILS) has backed over 73,000 businesses with financing packages since its launch in March.
The Bounce Back Loan Scheme (BBLS) has supported over 1.3 million small and micro businesses affected by the pandemic.
623 larger businesses have been supported by the Coronavirus Large Business Interruption Loan Scheme (CLBILS).

HM Treasury figures¹ published today reveal that the UK's banking and finance industry has supported over 1.4 million businesses across the country through government-backed Coronavirus lending schemes.

Lenders have approved over 73,000 facilities through the CBIL scheme and over 1.3 million business owners have benefitted from the Bounce Back Loan scheme. For larger businesses, £4.57 billion has now been approved via the Coronavirus Large Business Interruption Loan Scheme to 623 firms.

Figures from the British Business Bank² have shown that support for businesses from the banking and finance industry has been spread across all areas of the country, with the UK’s worst-affected sectors continuing to receive the strongest support from lenders.

There are 28 lenders accredited to the BBL scheme³, with the vast majority of businesses having an existing relationship with one of these lenders. 110 lenders are now accredited to the CBIL scheme.

Government-backed loans are just one part of the industry’s plan to support businesses of all sizes and sectors. Lenders have a wide range of additional measures available, including working capital extensions, overdraft extensions and capital repayment holidays.

Stephen Pegge, Managing Director of Commercial Finance at UK Finance, said:

“The banking and finance industry has provided unprecedented levels of support to help businesses through the Covid-19 crisis, with over 1.4 million firms accessing finance through government-backed lending schemes.

“Financial support for businesses remains evenly spread across the country and the worst-affected sectors are receiving the strongest levels of backing from the industry.

“Bank staff are working incredibly hard to process applications and meet significantly increased levels of demand, while carrying out the necessary anti-fraud and money laundering checks.

“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.”

Case Studies

Please find a selection of case studies below which are available for interview. For further information, please contact the UK Finance press office on 020 7416 6750 or email press@ukfinance.org.uk

Coronavirus Business Interruption Loan Scheme (CBILS)

MJ Allen Group - Kent

MJ Allen Group, a family-run metalwork and engineering company in Ashford, Kent, used a seven-figure CBILS loan from HSBC UK to bridge cash flow amid a fall in demand. This allowed the business to secure the future of 240 jobs and ensure the business could confidently restart working on new and existing business opportunities.

Phoenix Cinema – Leicester

The Phoenix Cinema in Leicester used a six-figure CBILS loan from Lloyds Bank to support cash flow, implement new safety measures, and continue its community outreach programme, providing films and educational activities for the local community.

Rackit – North Ayrshire

Rackit, a North Ayrshire-based storage and handling solutions business, secured a £1 million funding package from NatWest to help support the business during the Coronavirus pandemic. The CBILS loan will assist with cash flow which has been severely impacted by supply chain delays and travel restrictions implemented in response to Covid-19. It will also enable the business to continue to supply major customers across Scotland, the UK and Europe.

Comfortex – Oldham

Specialist foam product manufacturer, Comfortex Limited, produced over 14,000 medical mattresses for hospitals globally during the Coronavirus pandemic with the support of CBILS funding from NatWest. The six-figure package enabled Comfortex to continue manufacturing its medical care products during the Covid-19 lockdown, doubling its output of medical mattresses for the NHS and hospitals internationally.

Lishmans LLP - Sheffield

Lishmans LLP, a Sheffield-based accountancy firm, secured a £250,000 CBILS funding package from NatWest to support the future of the business. The funding has enabled the business, which provides business consultancy, accountancy and taxation services, to continue servicing clients and retain its 20 staff. The company has supported its clients throughout the coronavirus pandemic, helping them secure over £20 million in CBILS funding to safeguard their own businesses.

Bounce Back Loan Scheme (BBLS)

Stagecoach Performing Arts School – Cardiff

Stagecoach Performing Arts School in Cardiff reopened its doors to students in September thanks to support through the Bounce Back Loan Scheme from NatWest. The school was forced to shut in March due to the Covid-19 pandemic and has used the BBLS funding to support its plans to reopen, with new social distancing measures in place, to more than 140 students.

Other Lending

NWH Group – Edinburgh

NWH Group, a waste management business in Edinburgh, secured £2m in asset financing from HSBC UK, which helped it to invest in a recycling plant that will save 20,000 tonnes of industrial waste from going to landfill each year.

Notes to editors

UK Finance is the collective voice for the banking and finance industry. Representing more than 250 firms across the industry, we act to enhance competitiveness, support customers and facilitate innovation.

HM Treasury data on lending under the CBIL, BBL and CLBIL schemes is available here.
Regional analysis of coronavirus loan schemes by the British Business Bank is available here.
A list of lenders accredited to the BBL scheme can be found here. A list of lenders accredited to the CBIL scheme can be found here.
The banking and finance industry has put in place a clear plan to help Britain through:

2.5 million mortgage payment deferrals
27 million interest-free overdrafts offered, 1.13 million payment deferrals on credit cards and 793,000 payment deferrals on personal loans
£61.9 billion of lending to over 1.4 million businesses through government Covid-19 lending schemes
Protecting customers from scams and fraud
Higher limit for contactless payments

5. The Bank of England has announced that the Covid Corporate Financing Facility (CCFF) has so far supported £16 billion of lending.

6. More information on the CBIL scheme is available here. More information on the BBL scheme is available here. More information on the CLBIL scheme is available here.

7. The government’s 'support finder’ tool can help businesses and self-employed people across the UK to quickly and easily determine what financial support is available to them during the coronavirus pandemic.