Companies have been lent greater than £50bn via the state-backed loan schemes. Some £14bn has been handed out underneath CBILS whereas the majority has been given underneath BBLS, which affords a 100laptop assure.
BBLS will finish later than CBILS on Nov 4, whereas a scheme for bigger companies will wrap up on Oct 20. Whereas CBILS ends on Sept 30, lenders may have a further two months to course of functions already made.
Demand for the state-backed loans has eased in current months however specialists have warned that the strain may mount on companies over the approaching months.
Corporations face a assist cliff-edge as a variety of authorities schemes wind down. The top of the furlough scheme in October is anticipated to result in a wave of redundancies that would hamper the financial system’s restoration. Nevertheless, there are rising worries about the price of the assist.
A Treasury spokesman mentioned: “We’ve backed companies from the beginning of the outbreak – paying billions in government-backed loans and grants, defending jobs by paying staff’ wages and deferring billions of kilos in tax.
“But we’ve been clear these schemes are temporary and it would not be sustainable for them to continue indefinitely.”
They added that the Treasury retains “all support schemes under review”.