Million loans worth £43bn given to help firms survive Covid
MORE than a million taxpayer-backed loans worth almost £43bn in total have now been handed out by the Treasury in the past three months to help companies survive the Covid-19 crisis, official figures show.
The unprecedented surge in credit is some 14 times higher than the average 70,000 loans and overdrafts typically handed out to small businesses each quarter, according to UK Finance.
The vast majority of the financial support has come through the Bounce Back Loan Scheme introduced in May, with £29.5bn of the 100pc guaranteed loans handed out to 967,321 smaller companies so far.
More than 80pc of the 1.2m applications – which allow firms to borrow up to 25pc of their turnover up to a cap of £50,000 – have been approved.
Alongside direct loan support, the figures showed that companies deferred £27.5bn in VAT in the three months to June. The latest furlough data revealed 9.3m jobs had been put on taxpayer life support, with £25.5bn paid out.