Christ Yoder
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UK businesses have borrowed nearly £ 35 billion from three government emergency loan programs for businesses hit by the coronavirus crisis.
Data released by the Treasury showed there was a 10.28% increase in new loans issued in the week of June 7 to £ 34.91 billion.
Treasury data also revealed that loans issued under the Bounce Back lending program for smaller businesses saw the highest demand at £ 23.78 billion issued on June 7, up 2. £ 45 billion compared to the previous week.
The BBLS, which provides loans of up to £ 50,000 with a 100% government guarantee, was launched in May after signs that other lending programs were not reaching enough to all businesses in need of support. ‘aid.
The Coronavirus Business Interruption Loan Scheme (CBILS), which has an 80% government guarantee, reached £ 9.6 billion, up from £ 640 million a week earlier.
CBILS offers loans of up to £ 5million to small and medium-sized businesses with interest and first year fees paid by the taxpayer.
The program has been heavily criticized in the past for the slowness with which banks have dealt with loans to companies facing devastating trade disruptions due to the coronavirus pandemic containment.
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COVID-19: Is the government’s loan program working?
More than £ 1.5 billion has been issued under the loan scheme designed for large companies. The Coronavirus Large Business Interruption Loan Scheme offers loans of up to £ 200million with an 80% government guarantee to medium and large businesses.
Some 228,194 loan applications from businesses of all sizes are still pending approval or rejection.
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Loan program: the government “did not act decisively”
The Treasury also released data showing 8.9 million workers had been put on leave under its job retention program, which pays 80% of wages to temporarily laid-off workers and costs the government 19.6 billion pounds since its introduction in March.
A separate scheme for the self-employed had received 2.6 million claims for £ 7.5 billion.
