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British businesses have now borrowed £41bn in loans backed by guarantees from the government to cope with the impact of coronavirus. Approval rates for the coronavirus business interruption loan scheme (CBILS) continue to sit at 51 percent, hitting a total of £10.53bn lent so far. As of 21 June just 50,482 businesses have received this type of loan, up from 49,247 by 14 June. In comparison, the bounce back loan scheme (BBLS), which supports businesses with 100 per cent state-backed loans, continues to be the most popular choice with £28.09bn lent at an approval rate of 82 per cent.
In this piece, we look at the latest data to reveal how each of the coronavirus business loan schemes are performing.
Data up to close of business |
Value of Facilities Approved |
Number of Facilities Approved |
Total Number of Applications |
10-May |
£6.09bn |
35,919 |
64,531 |
17-May |
£7.25bn |
40,564 |
81,124 |
24-May |
£8.15bn |
43,045 |
84,607 |
31-May |
£8.92bn |
45,843 |
89,724 |
07-Jun |
£9.56bn |
47,650 |
93,305 |
14-Jun |
£10.11bn |
49,247 |
96,492 |
21-Jun |
£10.53bn |
50,482 |
98,975 |
Data up to close of business |
Value of Facilities Approved |
Number of Facilities Approved |
Total Number of Applications |
10-May |
£0.36bn |
59 |
450 |
17-May |
£0.59bn |
86 |
496 |
24-May |
£0.82bn |
154 |
502 |
31-May |
£1.11bn |
191 |
579 |
07-Jun |
£1.57bn |
244 |
615 |
14-Jun |
£1.77bn |
279 |
661 |
21-Jun |
£2.10bn |
315 |
709 |
Data up to close of business |
Value of Facilities Approved |
Number of Facilities Approved |
Total Number of Applications |
10-May |
£8.38bn |
268,173 |
363,646 |
17-May |
£14.18bn |
464,393 |
581,516 |
24-May |
£18.49bn |
608,069 |
769,137 |
31-May |
£21.29bn |
699,354 |
873,192 |
07-Jun |
£23.78bn |
782,246 |
964,414 |
14-Jun |
£26.34bn |
863,584 |
1,057,130 |
21-Jun |
£28.09bn |
921,229 |
1,123,683 |
Data up to close of business |
Total number of applications |
Number of convertible loans approved |
Value of convertible loans approved |
27-May |
419 |
n/a |
n/a |
31-May |
464 |
n/a |
n/a |
07-Jun |
533 |
53 |
£55.9m |
14-Jun |
577 |
155 |
£146.0m |
21-Jun |
623 |
252 |
£236.2m |
CEO of Nextfin, Sacha Bright, said: “It's good to see that loans are being approved at a much faster rate. However, as I have pointed out before, ladening businesses with debt, although the cash helps, it's not the best way forward.
“Now we are coming out of this epidemic, we need to see the government create schemes that encourage investment and enterprise, such as increasing allowances on S/EIS investment and supporting equity crowdfunding sites, business hubs, local enterprise partnerships and growth hubs to assist businesses with grants and support.
“So far the government’s aim has been to save businesses, now it needs to come up with creative solutions to ensure that these businesses can continue to stay alive and prosper, or these government-backed loans are pointless, and could end up going into default.
“We have to remember that the key word here is ‘loans’, the government hasn’t lost this money yet and is getting a return on the interest. Moving forward, small businesses are going to need physical cash, grants and investment to come out of the other side of this recession."
Authors: Oliver Murphy & Sacha Bright
Disclaimer
To the best of our knowledge, the information we have provided is correct at the time of publishing. Sacha Bright is not a solicitor or accountant and we recommend that you seek professional advice on any topic discussed.
Tagged: news sme coronavirus business loan entrepreneur
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