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SMEs tap £1.1bn through Covid-19 lending scheme – UK Finance

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  • 15/04/2020
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SMEs tap £1.1bn through Covid-19 lending scheme – UK Finance
The banking and finance sector has lent more than £1.1bn to small and medium sized businesses through the Coronavirus Business Interruption Loan Scheme (CBILS).

 

Total lending under the scheme has grown by £700m in the last week, an increase of 150 per cent, according to trade body UK Finance.

Lenders have received 28,460 formal applications to the scheme from businesses.

Around 6,020 loans have been processed and approved.

The number of loans approved each day has increased from 240 on 2 April to 910 on 8 April.

The average value of a CBILS loan has grown to over £185,000.

Total lending under the scheme has increased from £453m on 6 April to £1.1bn a week later.

UK Finance said staff in branches and call centres were “working tirelessly” to provide businesses with finance to help them get through the current economic challenges.

All lenders are looking to provide support quickly and flexibly and will take into account a business’s individual circumstances in accordance with the terms of the scheme.

Stephen Jones, chief executive of UK Finance, said: “The banking and finance sector recognises the challenging conditions faced by many businesses and the critical role we must play in helping the country get through this crisis.

“Frontline staff in local branches and call centres are working incredibly hard to help firms access finance as quickly as possible amid unprecedented demand. Like all businesses they are working at reduced capacity as many staff are self-isolating or looking after family.

“I am grateful that so many colleagues worked through the bank holiday so that over one billion pounds of support has now been delivered to businesses. We expect this figure to continue to grow rapidly as lenders work hard to help get Britain through the current crisis.”

Chancellor Rishi Sunak added: “Getting finance to businesses is a key part of our plan to support jobs and the economy during this crisis – and we’re working with lenders to ensure support reaches those in need as soon as physically possible.

“Loan approvals have doubled in a week with more than 6,000 businesses benefiting from over £1.1bn of loans – and it’s vital we continue this upward trajectory.”

 

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