Data compiled by industry body UK Finance showed firms had been lent £291.9m, as of yesterday, via the coronavirus business interruption loan scheme (CBILS).
There are around 6m small and medium-sized firms in the UK. They have monthly payroll costs of roughly £41bn, according to economic consultancy Fideres.
CBILS was launched on 23 March and offers loans to small businesses with turnover of up to £45m. Companies can access the money through more than 40 approved lenders and 80 per cent of the loans are guaranteed by the government.
Business owners and their advisors have criticised the programme from the beginning saying stringent requirements from the government and banks had prevented lending. On Thursday, chancellor Rishi Sunak ditched many of the demands on businesses to try and improve the situation.
By Wednesday, just £90.5m had been lent out via the scheme in 983 loans. The latest figures therefore mark an improvement in lending through CBILS after Sunak made the changes.
According to the UK Finance data, 52,710 phone enquiries and 256,483 online enquiries had been made by yesterday. Yet only 2,022 loans had been approved and £291.9m made available.
Financial services industry body UK Finance collects and compiles information from banks each day about their lending through the scheme.
‘Significant bottlenecks’ in loan scheme
A Treasury spokesperson said: “We’re working with the financial services sector to ensure that companies feel the full benefits from this support.”
“We’re taking unprecedented action and have announced £330 billion in business loans and guarantees, paying 80 per cent of the wages of furloughed workers for three months, VAT and tax deferrals, introducing cash grants of up to £25,000 for small companies.”
A UK Finance spokesperson said: “Lenders have been working closely with the government and British Business Bank since implementation to ensure the scheme can operate in the best way possible.”
All we can say is, whatever they are doing they aren’t doing it fast enough for SMEs currently facing the abyss.
Taken from and amended from the original
Exclusive: Just 2,000 UK firms given coronavirus business loans
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