// More than £50bn of loans to businesses hit by Covid-19 approved so far, the Treasury says
// This includes a combination of Bounce Back loans, CBILS, CLBILS, Future Fund & the furlough scheme
More than £50 billion of loans to retailers and other businesses hit by the Covid-19 pandemic have been approved so far, the Treasury has said.
This includes, up to August 2, £33.34 billion in Bounce Back Loans for 1.136 million businesses.
The UK Government, which is guaranteeing the vast majority of the loans should they not be repaid, added that £13.08 billion has been endorsed through the Coronavirus Business Interruption Loan Scheme (CBILS) and £3.27 billion through the Coronavirus Large Business Interruption Loan Scheme (CLBILS) to larger businesses.
READ MORE:
- Government confirms end date for special Covid-19 retail grants
- Government-backed Covid-19 loans expanded to retailers in deep debt
- Chancellor warned he has 24hrs to avoid “historic mistake” on furlough scheme
A total of 537 convertible loans have been awarded through the Future Fund, totalling £534 million.
Meanwhile, the UK Government is continuing to support the salaries of 9.6 million workers on furlough through the Coronavirus Job Retention Scheme.
The latest HMRC figures up to August 2 show 1.2 million businesses are claiming a total of £33.8 billion.
Responding to the updates, Federation of Small Businesses (FSB) national chairman Mike Cherry said: “Nine in 10 people who moved from unemployment back into the workplace after the financial crash did so through a small business or self-employment.
“Many were striking out on their own for the first time, so support for new businesses over the months ahead – especially through the Start-up Loans Programme and New Enterprise Allowance – will be integral to recovery.
“Small firms and their staff need to be confident that the infrastructure is there to tackle this virus.
“We were promised a world-beating Test and Trace system, and such a system is integral to getting businesses firing on all cylinders again.
“While most have benefited from direct government support, many have not. Thousands of directors and newly self-employed people have been left with no help for months now.
“As we look to the autumn, the government needs to think carefully about how it will help those who have been left behind.
“Bounce Back Loans have provided critical cash injections for huge swathes of the small business community.
“Firms now need a guarantee that they won’t have to start making repayments until they’re making a profit.
“Such a pledge would give them the confidence to invest, recruit and expand today rather than hoard cash for fear of what’s coming down the line.”
with PA Wires
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