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State-backed loan schemes deliver £15bn to UK businesses

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Via Yahoo Finance

British businesses have so far received almost £15bn of emergency financial aid through government-backed rescue loans, according to official figures.

Signalling a sharp increase in lending to firms during the pandemic, Rishi Sunak, the chancellor, said that more than 304,000 companies have benefited from two separate government-backed loan schemes.

Related: UK furlough scheme extended until end of October

The figures show high street banks issued loans worth almost £8.4bn to about 268,000 firms during the first week of the government’s new 100% loan guarantee scheme.

The chancellor launched the bounce-back loans with full state guarantees after facing intense criticism for the slow take-up of its coronavirus business interruption loans scheme (CBILS), which came with 80% backing.

Related: How the UK furlough scheme compares with other countries

The figures showed businesses received more money from bounce-back loans in the first week than during the life of the CBILS programme, which was launched on 23 March and provides larger loans to bigger firms.

More bounce-back loans are being approved by high street banks – about 38,000 every day – than in total for CBILS after more than a month of the scheme’s operation.

High street banks have provided about £6.1bn to 35,919 businesses under the CBIL scheme so far.

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