One million bounce back loans approved
More than one million businesses have now received bounce back loans via accredited lenders – as Funding Circle becomes the first peer-to-peer lending platform to be approved to offer the scheme.
According to the latest Treasury figures, more than £45m has now been distributed to businesses across the UK through the government’s emergency Covid-19 loan schemes.
£30.9bn has been approved through the bounce back loan scheme (BBLS), which offers loans up to £50,000 backed by a 100 per cent government guarantee.
Meanwhile the coronavirus business interruption loan scheme (CBILS), which has an 80 per cent guarantee and provides loans of up to £250,000, has delivered £11.5bn to 53,500 small- and medium-sized enterprises.
Furthermore, the coronavirus large business interruption loan scheme which was introduced in April to help larger firms has now provided £2.6bn in loans.
“The banking and finance industry is continuing to deliver on our plan to help businesses of all sizes get through these challenging times,” said Stephen Pegge, managing director of commercial finance at UK Finance.
“Just over two months since it was launched, the bounce back loan scheme has now backed over one million businesses with £30.9bn worth of lending.
“Across all the Covid-19 schemes, £45bn has now gone towards supporting businesses thanks to the tireless efforts of staff working on the ground.
“Today’s figures represent part of an unparalleled package of support from the industry which includes commercial lending, capital repayment holidays, extended overdrafts and asset-based finance.
“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.”
“Our small businesses are the powerhouse of our economy and will help drive our recovery as we bounce back from this global crisis,” said Chancellor Rishi Sunak.
“We’ve worked hard to give small businesses the help they need- from loans and grants to paying the wages of their staff.
“I’m delighted that more than a million loans have been approved – and we will continue to do all we can to support small business as they reopen their doors in the weeks ahead.”
Earlier today, it was announced that Funding Circle has become the first peer-to-peer lending platform to offer bounce back loans. Funding Circle has provided 16 per cent of all coronavirus relief funding via government-backed schemes since the platform was authorised to offer CBILS loans at the end of April.
Last week, two more P2P platforms, Folk2Folk and LendingCrowd, were approved to deliver CBILS.
Read more: Revealed! The CBILS P2P lenders that are still open for retail investors
