Over the past few months, the various COVID loan schemes introduced by the Government have been widely publicised. As we become more familiar with the terms applicable to these loans, so too have we become accustomed to the acronyms CBILS and BBLS.
Whilst it may not have been evident how successful those applying for these schemes have been in recent times, the Government has now started to release weekly figures. These include the number of applications made, how many of those have been approved and the total value that has been lent under these schemes.
Detailed below are summary graphs for each of the government schemes detailing the amount approved under each scheme and the approval percentage on applications made.
As at the 19th July the total Government loan support totals £48.35 Billion.
Bounce Back Loan Scheme (BBLS)
To date 1,316,970 applications have been made of which 1,084,153 have been approved. The total value lent under the scheme to date is £32.79bn.
The total value of the BBLS is more than double that loaned out under the two Coronavirus Business Interruption Loan Schemes (CBILS). It also has a much higher approval percentage with 4 in 5 loans approved. This is unsurprising given the straightforward nature of the application and the relatively low value when compared to the other loan schemes. The graph illustrates that the value of new BBLS being approved each week is now slowing but that the approval percentage is staying at c.82%.
One would suspect that the majority of companies have now made their BBLS applications and that numbers of new weekly applications will continue to fall over the coming weeks.
Coronavirus Business Interruption Loan Scheme (CBILS)
To date 112,212 applications have been made of which 55,674 have been approved. The total value lent under the scheme to date is £12.2bn.
The government data identifies that approval percentages have decreased over the past couple of months and are now around 50%. This may be partly due to the time it is taking banks to process the applications or simply that more businesses are now trying and failing with the CBILS process.
Coronavirus Large Business Interruption Loan Scheme (CLBILS)
To date only 831 applications have been made of which 428 have been approved. The total value lent under the scheme to date is £2.89bn.
Whilst companies were quick to make applications with 450 of the 831 made by the 10th May, due to their size and company complexity, they have taken longer to process than the smaller loans. As such, the approval percentage does not show a true picture until the last few weeks, where this has now increased to c.51%, achieving very similar results to the CBIL scheme. Given the time it takes to approve larger loans, its likely that the approval percentage will continue to rise over the next few weeks/months.
The Future Fund has shown a similar pattern to that of the CLBILS with companies applying for the scheme earlier rather than in recent time. However, due to its added complexity, it has taken a longer period of time for these convertible loans to be approved.
As with the CLBILS we expect that the percentage approved will continue to grow as these applications are processed.
Cash flow monitoring
In summary, these statistics clearly show that a significant proportion of UK business have attempted and, in many cases, succeeded in raising cash via these loan facilities. What is now crucial is for those business, as well as those who decided against applying for funding, to continue to monitor their cash flows. Businesses have received unprecedented support from the Government through the loan schemes, furlough support and tax deferrals and whilst it may appear that businesses have sufficient cash reserves, the future is uncertain and the phrase cash is king is going to become even more important.
If you would like support in developing a robust cash flow forecast for your business please contact the Ensors Corporate Finance team. Whether you simply need reassurance that your existing forecast is fit for purpose or you would like us to work with you to develop a new one – the team are flexible in their support.