According to the latest industry research, UK businesses have borrowed more than £52.6 billion in a bid to combat the disruption caused by the Coronavirus pandemic.
Many businesses have faced a massive financial hit this year, with substantial revenue losses and cash flow issues. This led to many having to seek support through the Government-backed loan schemes to survive in the times of unprecedented economic disruption.
The research focused on the cumulative value of loans that have been approved through the Coronavirus Businesses Interruption Loans Scheme (CBILS), Bounce Back Loan Scheme (BBLS), and Coronavirus Large Business Interruption Loan Scheme (CLBILS).
The CBIL scheme, which operates through the British Business Bank via more than 40 accredited lenders provides up to £5 million worth financial help in the form of term loans, overdrafts, and asset finance.
Statistics indicate that between 10 May and 16 August, 516 medium-sized and larger businesses in the UK received £3.5bn worth financial help through the CBIL Scheme.
Companies with a turnover of more than £45 million have been able to access up to £200m worth financial help to tackle the disruption the pandemic has caused through the CLBIL scheme. Whilst the BBLS allows lenders to provide a six-year term loan from £2,000 to 25 per cent of a business’ turnover.
In the middle of May, the total value of the schemes amounted to £14.8 billion, this surged by more than 150 per cent in June to £38.2 billion worth of loans. By July this had reached £46.2 billion before hitting £52.6 billion on August 16.