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How Are Each Of The Coronavirus Business Loan Schemes Performing?

Posted 12 days ago

How Are Each Of The Coronavirus Business Loan Schemes Performing?
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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. 

Coronavirus Business Interruption Loan Scheme (CBILS)

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

Coronavirus Large Business Interruption Loan Scheme (CLBILS)

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

Bounce Back Loan Scheme (BBLS) 

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

Future Fund

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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