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Law360, London (July 7, 2020, 6:46 PM BST ) Tens of billions of pounds have been poured into a range of industries to help businesses survive the COVID-19 pandemic, according to HM Treasury figures published Tuesday, but a banking industry body warned companies to "carefully consider" before applying for help.
Following the government-enforced lockdown, Britain's finance department has announced schemes such as bank loans that are designed to assist businesses struggling to cope. The Treasury said on Tuesday that one of its programs, the Bounce Back Loan Scheme, or BBLS, was a success, saying loans approved for small companies has passed the one million milestone.
"I'm delighted that more than a million loans have been approved — and we will continue to do all we can to support small businesses as they reopen their doors in the weeks ahead," said Chancellor Rishi Sunak.
Loans worth £31 billion ($39 billion) have been approved under the BBLS program.
Stephen Pegge, a managing director at banking and financial industry trade body UK Finance, said £45 billion has gone toward helping business and that the published figures are part of "an unparalleled package of support."
But he sounded a note of caution. "It's important to remember that any lending provided under government-backed schemes is a debt not a grant, and so firms should carefully consider their ability to repay before applying," he said.
There have been reports that some companies have been unable to obtain support.
Tuesday's updated figures from HM Treasury detail the level of assistance given to companies.
In addition to BBLS, the Coronavirus Business Interruption Loan Scheme or CBILS, has granted facilities valued at £11.5 billion. Of the more than 107,000 applications received, 53,536 facilities were issued.
Another scheme, the Coronavirus Large Business Interruption Loan Scheme or CLBILS, received 783 applications and approved 394 facilities. The value of approved loans was £2.58 billion.
Meanwhile a total of 722 applications were received for the Future Fund, and 376 convertible loans were issued with a value of £379.9 million.
Figures include approved applications and those that are still to be processed. They also include those that have been declined and those that have been withdrawn — where borrowers decide not to proceed.
The CBILS figure also includes applications that have been converted to applications for the BBLS scheme, according to Treasury.
--Editing by Alyssa Miller.
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