Bounce Back Loan Scheme tops £30bn

The Bounce Back Loan Scheme has now helped more than one million businesses to access £30.9bn worth of loans to help small and micro businesses absorb the financial shock of coronavirus, new Treasury figures have revealed.

The latest government data also indicated that for the UK’s small and medium sized businesses, the banking industry has provided £11.5bn worth of facilities through the Coronavirus Business Interruption Loan Scheme (CBILS), to 53,500 companies.

The other of the three main government-backed lending schemes, the Coronavirus Large Business Interruption Loan Scheme, which was introduced in April to help larger UK enterprises, has also now provided £2.6bn in loans.

Responding to the Treasury’s figures, IW Capital CEO, Luke Davis, commented: “One of the key points in economic recovery in the next year or so is to fully support the SMEs of the UK to come roaring back with confidence with the right kinds of investment and mentorship.

“As private finance providers, we have a responsibility to back ambitious and innovative firms and founders. Luckily this is something the SME sector in the UK has in spades. We have already seen from the CBILS that banks are unwilling to lend without huge guarantees which further increases the importance of private support and alternative finance.

“State-sponsored initiatives and infrastructure investment will be key to giving businesses confidence but the majority of funding is likely to come from private sources.”

UK Finance managing director of commercial finance, Stephen Pegge, added: “The banking and finance industry is continuing to deliver on our plan to help businesses of all sizes get through these challenging times.

“It’s 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.”

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