Government loans to support businesses amid Covid-19 top £31bn

371
Coronavirus Business Interruption Loan Scheme job retention scheme covid-19
Three government-backed loan schemes for UK businesses have paid out more than £31 billion to date
// Government-backed loans to alleviate the Covid-19 impact on businesses have topped £31bn
// Almost 750,000 companies had seen loans approved by May 31

The government-backed loans introduced to support workers’ wages amid the Covid-19 pandemic have reportedly topped £31 billion.

Three government-backed loan schemes for UK businesses have paid out more than £31 billion to date, according to updated Treasury data, Sky News reported.

Almost 750,000 companies had seen loans approved by May 31 under the emergency Covid-19 funding initiatives; the Coronavirus Business Interruption Loan Scheme (CBILS), Coronavirus Large Business Interruption Loan Scheme (CLBILS) and Bounce Back Loan Scheme (BBLS).


READ MORE:


The data from the Treasury showed that £31.3 billion had been paid out by banks – up from £27.5 billion a week ago.

The growth continued to be led by demand for the BBLS, in which sums – 100 per cent guaranteed by the government – can be borrowed up to a maximum of £50,000.

The Treasury said £21.3 billion had been dispersed by lenders to 699,354 companies.

The total number of applications for bounce back loans stood at more than 873,000.

A sum of £8.9 billion had been lent to nearly 46,000 companies under CBILS, and a further £1.1 billion to 191 companies as part of CLBILS.

Meanwhile, the number of workers’ wages being supported by the furlough scheme had topped 8.7 million – up from 8.4 million a week earlier – to which the Treasury put the cost at £17.5 billion to date.

The Office for Budget Responsibility has estimated that the total cost of the taxpayers’ support is expected to top £120 billion.

Last week, Chancellor Rishi Sunak announced changes to the Job Retention Scheme allowing businesses to bring back staff part-time from July, but introduce a taper requiring firms to contribute to salaries from August.

The scheme itself is to be closed at the end of October.

Click here to sign up to Retail Gazette’s free daily email newsletter

LEAVE A REPLY

Please enter your comment!
Please enter your name here