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Total government coronavirus business loans approach £ 52 billion

Tuesday, August 11, 2020 10:07 AM

Chancellor Rishi Sunak introduced coronavirus loan programs to lend to businesses affected by pandemic downturn

The government has lent nearly £ 52bn to businesses through its emergency coronavirus loan funding programs as businesses try to weather the downturn triggered by the pandemic.

Data released by the Treasury today showed total business loans reached £ 51.7 billion as of August 9.

The Bounce Loan Program (BBLS) amounted to £ 34.96 billion with 1,157,296 facilities approved and a total of 1,404,726 applicants.

Under the scheme, the government guarantees up to 100 percent of the loan to banks lending money up to £ 50,000.

Loans through the Coronavirus Business Interruption Loan (CBILS) program have reached £ 13.41 billion, the Treasury said today.

The program received 121,669 business applications with 59,520 approved applications.

The CBILS program is backed by an 80% government guarantee and loans can reach up to £ 5million.

The Coronavirus Business Interruption Loan Program (CLBILS) represented £ 3.4 billion in loans as of August 9 with 497 loans approved out of a total of 896 applications.

It also has an 80% guarantee, but loans can go up to £ 200million.

Government loan programs are expected to end in the fall. CBILS is expected to close in late September and BBLS is expected to end in November. However, the government reserves the right to extend the plans.