Government patches up small business loan scheme

Changes to the Coronavirus Business Interruption Loan Scheme, under which the government guarantees 80% of loans made by banks and lenders, are having a positive effect.

Bank of England Governor Andrew Bailey © ANDY RAIN/EPA-EFE/Shutterstock
Bank of England governor Andrew Bailey thinks firms seeking less than £25,000 may need more support © Shutterstock
(Image credit: Bank of England Governor Andrew Bailey © ANDY RAIN/EPA-EFE/Shutterstock)

The government’s flagship loans scheme for small and medium-sized businesses, the Coronavirus Business Interruption Loan Scheme (CBILS), has not had an auspicious beginning. Data from UK Finance, the group that represents the banking sector, shows that lenders have so far received a relatively meagre 28,460 loan applications – and approved just 6,020 advances.

Interest does appear to have picked up since the first few days, when only a handful of loans were agreed. Changes to the scheme, under which the government guarantees 80% of loans made by banks and lenders, seem to have had a positive effect.

Subscribe to MoneyWeek

Subscribe to MoneyWeek today and get your first six magazine issues absolutely FREE

Get 6 issues free
https://cdn.mos.cms.futurecdn.net/flexiimages/mw70aro6gl1676370748.jpg

Sign up to Money Morning

Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter

Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter

Sign up
Explore More
David Prosser
Business Columnist

David Prosser is a regular MoneyWeek columnist, writing on small business and entrepreneurship, as well as pensions and other forms of tax-efficient savings and investments. David has been a financial journalist for almost 30 years, specialising initially in personal finance, and then in broader business coverage. He has worked for national newspaper groups including The Financial Times, The Guardian and Observer, Express Newspapers and, most recently, The Independent, where he served for more than three years as business editor.