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According to UK Finance data, over 50 percent of applications for the Coronavirus Business Interruption Loan Scheme (CBILS) have now been approved by lenders.
The scheme provides financial support to smaller businesses across the UK that are losing revenue and seeing their cash flow disrupted as a result of the Covid-19 outbreak.
Commenting on the latest UK Finance figures (7 May) on the number of firms successfully accessing CBILS, Suren Thiru, the BCC’s Head of Economics, 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."
So far lenders have provided over £5.5bn to SMEs through various schemes.
Responding to the recent rise in figures, CEO of NextFin, Sacha Bright said: “As per suggested in the past, the CBILS Loan is based on the EnetFG which is meant for high quality borrowers that do not have security behind them.
“Banks have always been reluctant to issue government guaranteed loans especially when the previous 12 years of statistics show that only £3bn a year was leant in a healthy economy.
“The CBILS figures are almost exactly the same to that of the Enterprise Finance Guarantee which proves that we needed a more creative and robust solution, particularly when we consider that the Bounce Back Loan, which has only been in place for the last two weeks, has exceeded the amount lent under CBILS.
“I commend the government for listening to entrepreneurial Fintech professionals that lobbied for a 100 percent guarantee solution, despite the risks.”
Author: Sacha Bright & Oliver Murphy
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.
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