Just 6,000 loans made through coronavirus cash scheme

Just over 6,000 loans – or £1.1bn – has been lent to SMEs so far through the Coronavirus Business Interruption Loan Scheme (CBILS), new figures have been revealed.

The figures are rising, but Chancellor Rishi Sunak says it is “vital” that banks continue to process the loans at a quicker rate after criticism from SMEs across the East Midlands.

UK Finance says that total lending under the scheme has grown by £700m in the last week, an increase of 150%.

Some 6,020 loans have now been provided through CBILS, more than double the number that had been provided a week ago. The number of loans approved each day continues to rise, increasing from 240 on 2 April to 910 on 8 April, with a further 1,800 loans worth over £300m recorded over the bank holiday weekend.

Total lending under the scheme has increased from £453m on 6 April to £1.115bn a week later, while the average value of a CBILS loan has grown to over £185,000.

Lenders have received 28,460 formal applications to the scheme from businesses. Over 6,000 of these applications have been approved already, while others are still being processed and are expected to be approved over the coming days.

UK Finance is the collective voice for the banking and finance industry. It represents more than 250 firms across the industry.

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.”

The Chancellor of the Exchequer, Rishi Sunak, said: “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 £1.1 billion of loans – and it’s vital we continue this upward trajectory.”