Coronavirus loans’ bill passes £22bn

UK businesses have claimed more than £22 billion in Government loans and guarantees to support their cashflow during the coronavirus crisis.

That includes more than £14.18bn in 464,393 bounce-back loans for small businesses, just two weeks after the scheme was launched.

Bounce-back loans worth 25% of a business's turnover, up to a maximum of £50,000, have been available since 4 May 2020 with the Government paying the interest for the first 12 months.

Around £7.25bn has been paid out to 40,564 UK-based firms with turnover of no more than £45 million through business interruption loans since the scheme opened on 23 March 2020.

On a smaller scale, large firms with turnover of more than £45m have secured in excess of £590m through coronavirus large business interruption loans.

From 27 April 2020, businesses with turnover exceeding £45m are eligible for loans of up to £25m, while firms with turnover of more than £250m qualify for £50m.

Stephen Jones, chief executive at UK Finance, said:

"The banking and finance industry is committed to helping businesses get through these tough times.

"These changes mean firms can access loans from £2,000 to £200m through the coronavirus loan schemes.

"Any lending provided under government-backed schemes is a debt not a grant, so firms should carefully consider their ability to repay before applying."

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