Government business loan support now totals £62.70 Billion

by Ben Croston

On the 24 September the Chancellor announced that the deadline for all four of the Government backed loan schemes would be extended to the 30 November 2020.

Time therefore remains to register for these schemes and from the data released on the 22 October 2020, it would appear that whilst the rate of new applications is slowing, plenty of businesses are still applying. From the 16th August the Government has been releasing figures on a monthly rather than weekly basis.

As at the 18th October 2020 the total Government support through these four schemes now totals £62.70 Billion, this is up from £48.35 Billion as at 17th July 2020.

BBLS – Bounce Back Loan Scheme

  

Source: HM Treasury Coronavirus business loan scheme statistics

  • To date 1,660,835 applications have been made of which 1,336,320 have been approved (80.5%)
  • The total value lent under the scheme to date is £40.20bn

The total value of the bounce back loan scheme remains around double that loaned out under the two CBIL schemes. It also continues to have a much higher approval percentage with four in five loans being approved. The rate of new applications does appear to be slowing and approval percentages have dropped by c.2% from their height of 82.5% in July. It will be interesting to see if this trend continues as the scheme appears to be drawing to a close.

CBILS – Corona Business Interruption Loan Scheme

Source: HM Treasury Coronavirus business loan scheme statistics

  • To date 159,277 applications have been made of which 73,094 have been approved (45.9%)
  • The total value lent under the scheme to date is £17.16bn

The Government data shows that approval percentages stayed very steady between May and the start of August at around 50%. There has been a significant decrease in September and October with approval percentages now as low as 45.9%.

CLBILS – Corona Large Business Interruption Loan Scheme

Source: HM Treasury Coronavirus business loan scheme statistics

  • To date only 1,034 applications have been made of which 623 have been approved (60.3%)
  • The total value lent under the scheme to date is £4.57bn

As expected, these larger loans have taken longer to process which appears to be one, if not the main reason, that the approval percentage have consistently increased over the period. As at 18th October the approval percentage is now up to 60.3%.

Future Fund

The Future Fund has shown a similar pattern to that of the CLBILS with companies applying for the scheme early but due to its added complexity it has taken a while for these convertible loans to be approved.

Source: HM Treasury Coronavirus business loan scheme statistics

As you would expect the Future Fund remains considerably the smallest in terms of loan support however it of the 1,243 applications made at the 18th October, 745 have now been approved (59.9%). October has seen a significant decrease in approval percentage (6.4% points) from 66.3% as at 20 September 2020. This raises the question as to whether it has suddenly become harder to meet the criteria for a successful application.

What next

Given the recent pattern of what appears to be a continued extension in Government support for businesses, the questions remains as to whether these schemes really will end on the 30 November 2020.

As Covid cases rise and the threat of more local or even a national lockdown grows, there has never been a more pertinent time to review your current cash flow position and reassess what cash your business needs to potentially survive a second, hopefully short term, reduction in revenues.

Whilst the deadline for these schemes remains open, they remain a viable option to help fund foreseeable cash flow issues caused by the Pandemic.

For more information on the support available, please see our Coronavirus support for business page.

Author

Ben Croston

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