Home Blog UK banks get almost two million bounce back loan applications

UK banks get almost two million bounce back loan applications

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Accommodation and food services sector received £5.5bn from 1117,864 approved applications.

As of 24 January, HM Treasury data shows that the Bounce Back Loan Scheme, has delivered 1.471 million loans to businesses, totalling £44.74 billion. The number of applications has reached 1,953,564 as more than 75% of applications been approved and around 90% of the loans have gone to micro businesses with turnover below £632,000.

Accommodation and food services sector received £5.5bn from 1117,864 approved applications.

The Bounce Back Loan Scheme was announced on 27 April 2020 to quickly provide loans of up to £50,000, or a maximum of 25% of annual turnover, to registered and unregistered small businesses to support their financial wellbeing during the COVID-19 pandemic.

New data also covered the value of BBLS facilities approved includes BBLS loans which have been ‘topped-up’ – that is, as announced on 2 November, BBLS borrowers who took out less than their maximum under the scheme rules (the lesser of £50,000 or 25% of their turnover) in their first loan application can top-up their loan up to the maximum.

As of 24 January, 83,173 BBLS top-ups had been approved worth £0.74 billion.

Bounce back loans have formed most Government-backed loans by value and number of applications since the scheme began on 4 May 2020.

There are also another three main Government-backed financial loan schemes for businesses of different sizes affected by coronavirus:

. The Coronavirus Business Interruption Loan Scheme (CBILS) offers loans of up to £5 million for businesses with an annual turnover under £45 million. The loans are 80% backed by the Government. As 24 January 87,529 businesses received £20.84bn. The HM Treasury data shows more than 113 thousand application has been refused under this scheme.

. The Coronavirus Larger Business Interruption Loan Scheme (CLBILS) extends the standard CBILS approach to larger businesses (turnover more than £45 million). 696 big companies have received £5.14bn up to 24 January according to the HM Treasury.

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