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Business support loans pass £31bn

More than 745,000 businesses in the UK have taken advantage of government-backed coronavirus loans worth £31.3 billion.

Bounce-back loans accounted for £21.3bn, £8.9bn in business interruption loans went out, followed by £1.1bn in large business interruption loans.

In seven days preceding 31 May 2020, more than £3.8bn in emergency loans was handed out to 94,000 firms through the three loan schemes.

UK Finance, which revealed the figures, said £19bn had also been drawn under bank-arranged commercial paper facilities.

Stephen Jones, chief executive at UK Finance, said:

"The amount of support available to firms affected by the COVID-19 crisis is unparalleled.

"But government-backed loans are not the only support the banking and finance sector has made available.

"Over the last few months, lenders have offered overdraft extensions, capital repayment holidays and asset-based finance to businesses.

"Any lending provided under government-backed schemes is a debt not a grant, so firms should consider their ability to repay before applying."

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