£171,000

The average value of a Coronavirus Business Interruption Loan Scheme (CBILS) loan stands at £171,000.

The latest UK Finance figures show that 16,624 of the 36,186 small business finance applications for a CBILS facility have been processed and approved.

Mike Cherry, national chairman of the Federation of Small Businesses (FSB), said: “These figures mark an improvement. But we need to see far more from the banks where the speed of processing applications and making money available to the smallest businesses are concerned.”

The average value of a CBILS loan stands at more than £170,000. The case studies presented by UK Finance today all concern firms that have managed to secure big facilities. “The small shops, restaurants, gyms, manufacturers and mechanics at the heart of our communities are not seeking loans of anywhere near this size,” Mike Cherry said.

“The Government should up its guarantee on emergency loans with values under £30,000 from 80% to 100%,” Mike Cherry added. That, combined with the streamlined application process that should be in place for facilities of this size, should help to get more cash to the small firms that really need it.

At present banks need to make backroom adjustments to facilitate commercial loans worth under £25,000 due to the Consumer Credit Act. Industry representatives consider that these adjustments are made swiftly to help micro-businesses apply for the scheme successfully.

Many small firms that made enquiries when this scheme launched have still been unable to make an application because of unresponsive customer service teams. For those that have made an application, the process is very slow. Many exporters have been declined facilities altogether on the basis that the majority of their revenue comes from international sales.

The FSB highlights that firms deserve to know what the application process looks like at every stage at every approved lender and urges the government to change criteria for CBILS to allow banks to process applications faster.

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