// Treasury approves 1.15 million applications to use the Bounce Back Loan Scheme totalling in £34.96bn worth of claims
// BBLS offers loans that are 100% covered by the state, valued at up to £50,000, to small retailers and businesses
The government-backed loans introduced to support small retailers and other small businesses amid the Covid-19 pandemic have reportedly topped £35 billion.
The Treasury revealed that 1.15 million applications to use the Bounce Back Loan Scheme totalling in £34.96 billion worth of claims, were approved by August 9.
The Bounce Back Loan Scheme (BBLS) offers loans that are 100 per cent covered by the state, valued at up to £50,000, to small retailers and businesses if the pandemic has had an adverse impact on their finances.
- Treasury has so far given £50bn to businesses in Covid-19 support
- Government confirms end date for special Covid-19 retail grants
- Government-backed Covid-19 loans expanded to retailers in deep debt
BBLS is different to the Coronavirus Business Interruption Loan Scheme (CBILS), which allows businesses to borrow up to £5 million from their bank, and Coronavirus Large Business Interruption Loan Scheme (CLBILS) for larger firms.
They are also separate from the Retail, Hospitality and Leisure Grants Fund, the Small Business Grants Fund, and the Discretionary Grant Fund – all of which are allocated to local authorities to pay businesses that need help.
However, some economists have raised concerns that many BBLS loans may never be fully repaid.
Earlier today, the UK Government said it received more than 1.4 million applications for the BBLS, meaning a quarter of a million approaches were rejected.
The Treasury said the total support via its various policy measures is now significantly over £50 billion.
This also includes £13.4 billion worth of claims for the CBILS, through almost 60,000 claims, plus £3.4 billion to 497 large firms through the CLBILS.
Meanwhile, HMRC’s furlough scheme, which is closed to new applications, has supported 9.6 million workers at a cost of around £33.8 billion.
with PA Wires