Mil­lion loans worth £43bn given to help firms sur­vive Covid

The Daily Telegraph - Business - - Business - By Russell Lynch

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.

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