Treasury says more than £50bn in loans has already been approved

More than £50 billion of loans to businesses hit by Covid-19 have been approved so far, the Treasury has said.

This includes, up to last Sunday, £33.34bn in Bounce Back Loans for 1,135,575 businesses.

The Government, which is guaranteeing the vast majority of the loans should they not be repaid, added that £13.08bn has been endorsed through the Coronavirus Business Interruption Loan Scheme (CBILS) and £3.27bn through the Coronavirus Large Business Interruption Loan Scheme (CLBILS) to larger firms.

A total of 537 convertible loans have been awarded through the Future Fund, totalling £534 million.

The Government is continuing to support the salaries of 9.6 million workers on furlough through the Coronavirus Job Retention Scheme.

The latest HM Revenue & Customs figures up to August 2 show 1.2 million businesses are claiming a total of £33.8bn.

Responding to the updates, Federation of Small Businesses (FSB) national chairman Mike Cherry said: “Nine in ten people who moved from unemployment back into the workplace after the financial crash did so through a small business or self-employment. Many were striking out on their own for the first time, so support for new businesses over the months ahead will be integral to recovery.

“Small firms and their staff need to be confident the infrastructure is there to tackle this virus. We were promised a world-beating Test and Trace system, and such a system is integral to getting businesses firing.

“While most have benefited from direct government support, many have not. The Government needs to think carefully about how it will help those left behind.”