Government CBILS and Bounce Back loan bail-out nears £30 billion

Loans dished out by the government to Covid-19 battered companies through three emergency lending schemes hit £27.5 billion on Thursday, Treasury figures show.

The Treasury's CBILS, CLBILS and Bounce Back loan schemes, unveiled by Chancellor Rishi Sunak two months ago, have made loans to 650,000 firms.

Figures released on Thursday suggest a slowdown in demand.

Around £5.4 billion was lent to 146,000 companies through the trio of schemes last week, down from £7 billion last week.

The Treasury's other bail-out scheme, the CCFF, has lent £20.5 billion to giant companies so far.

The cash is owed back to the government.

Stephen Jones, the head of bank lobby group UK Finance said: “The banking and finance industry has a clear plan to help businesses get through these tough times.​

“It’s important to remember that any lending provided under government-backed schemes is a debt not a grant, and so firms should carefully consider their ability to repay before applying"