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Bank of England loans to big business jumped to £ 7.6 billion as more corporate giants sought support to stay afloat during the coronavirus crisis.

Sam Woods, vice-governor of the central bank, told the Treasury Select Committee on Wednesday that borrowing from its Covid Corporate Financing Facility (CCFF) jumped £ 5.5 billion last week.

This comes as financial sector leaders told British politicians that start-ups and fast-growing financial companies face particular difficulties in accessing support from the Treasury and the central bank.

Earlier on Wednesday, the finance association UK Finance revealed that 6,020 loans, totaling more than £ 1.1 billion, had also been made to smaller UK companies under the Coronavirus Business Interruption Loan program. Scheme (CBILS).

However, less than a quarter of companies that have officially applied for loans have received cash support.

Stephen Jones, Managing Director of UK Finance, told the select committee that countries where governments have fully guaranteed emergency loans, rather than forcing banks to take certain risks, have been able to support small businesses much faster .

Under the British regime, the government has taken an 80% guarantee, with the banks assuming the rest of the risk.

Stephen Haddrill, CEO of the Finance and Leasing Association, told the Treasury Select Committee that credit needs to reach businesses faster in response to the pandemic.

He said, “Right now you have the support from the Bank of England going to the major banks, which could pass it on to non-banks, who would then pass it on to their customers.

“Let’s bypass that and try to get this assistance from the Bank of England or the British Business Bank directly to customers. “



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