Govt Financial Schemes Help Nearly 1m Businesses

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Businesses across the UK have suffered considerably due to the coronavirus pandemic that has swept the nation since March. With many forced to close in order to keep staff safe and a national lockdown enforced, preventing consumers from shopping, or eating or drinking out, lots of companies have lost a considerable amount of money over the last three months.

As a result, the government launched loan schemes to help British companies survive this challenging time, and nearly one million enterprises have now benefited from these initiatives.

HM Treasury recently revealed that lenders have loaned £38.2 billion, with as much as £3.3 billion being given out in the last week alone.

Chief executive of UK Finance Stephen Jones said: “Businesses of all sizes are facing unprecedented challenges in the face of the pandemic, but the banking and finance industry has a clear plan to get them through.”

Those applying for financial help have a good chance of being accepted, with research for UK Finance by BVA BDRC revealing that nearly 90 per cent of firms have had their application for a Bounce Back Loan or Coronavirus Business Interruption Loan approved.

Consequently, more than 910,000 businesses have already taken advantage of these initiatives, with tens of thousands more approvals going ahead every day.

However, Mr Jones warned companies this financial assistance is not without issues, stating: “Any lending under government-backed schemes is a debt, not a grant, and so firms should carefully consider their ability to repay before applying.”

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