Data released by the Government yesterday (2 June) showed that the acceptance rate for the Coronavirus Business Interruption Loan (CBIL) is still only 51%, a marginal increase on last week's rate of 50%.
Total lending under this scheme is now £9bn across 45,843 loans, an average of £195k, which is some way short of initial expectations. Applications, though, are slowly increasing with 5,000 received last week, up from 3,500 the week before.
Despite new approved lenders being added to the roster on a regular basis, the clunky nature of the CBIL application and approval process, and the availability of the more straightforward Bounce Back Loan is getting in the way of higher take up.
Please talk to us if you want help with applying for a CBIL. The high rate of declines across all the lenders shows just how important it is to make your business case well and present all the right supporting information.
There is better news on Bounce Back Loans, which have an acceptance rate of 80%. After the initial surge of applications at launch, the numbers for this scheme are slowing. Last week there were 104,000 applications compared with 187,000 the week before. The average loan size is £30,442.
To date, £31bn has been lent out under all the schemes combined, just 10% of the headline £330bn of guarantees promised by the Government at the beginning of the lock-down.
By: Neil Edwards<< Back to latest blogs