Final Covid Loan Data Reveals £ 80bn in Government Support During Pandemic
UK businesses have received nearly £ 80bn in government-guaranteed emergency loans during Covid crisis
Over 1.6 million loans – including Bounce Back loans and coronavirus-related business interruption loans – approved between April 2020 and May 2021
Businesses continue to benefit from a wide range of supports, including the payback loan program, extended leave plan and tax exemptions
Over 1.67 million loans have been made, protecting millions of jobs and livelihoods across the UK at a time of unprecedented uncertainty and crisis.
Government-backed loan programs have supported businesses of all sizes across the UK, from large manufacturers and exporters who have received large business disruption loans against Coronavirus (CLBILS) to innovative technology companies who have benefited from the Future Fund, as well as the millions of small businesses that received a Bounce Back Loan (BBL).
The government has pledged to help UK businesses in the next stage of the recovery. Businesses continue to benefit from a wide range of plans, including leave, the payback loan program, commercial rates and VAT relief, and an extended moratorium on business evictions.
Chancellor Rishi Sunak said:
We have pledged to support businesses at every stage of the pandemic and we have kept that promise.
I am proud of the extraordinary extent of support we have offered since March of last year – we will continue to support businesses and protect people’s jobs as we recover from the coronavirus.
Over 1.5 million rebound loans worth £ 47 billion have been provided during the pandemic, including £ 26 billion also provided as Coronavirus Business Interruption Loans (CBILS) as well as over £ 5 billion from CLBILS.
Additional funding of £ 1.12 billion was provided to 1,140 high growth companies through the Future Fund. The program, which ended on January 31, was designed to support innovative UK companies that typically rely on equity investments and whose access to investment has been affected by Covid-19.
Businesses will continue to access government guaranteed loans through the new payback loan program, which opened in April and will run until the end of the year. Innovative companies will also have access to the new Future Fund: The Breakthrough program will launch later this month.
In addition to providing more than £ 350 billion in business support during the pandemic, the government has also introduced the Pay as You Grow program to help businesses repay coronavirus loans. This offers the possibility of suspending repayments for up to six months and extending repayment periods from six to ten years to facilitate their collection and ensure the recovery of public funds.
|Type of loan||Value of approved loans||Total loans approved|
|Bounce Loans (BBLS)||£ 47.36 billion *||1,560,309|
|Coronavirus Business Interruption Loans (CBILS)||£ 26.39 billion||109 877|
|Coronavirus-related business interruption loans (CLBILS)||£ 5.56 billion||753|
|Future Fund||£ 1.1 billion||1 190|
* includes 106,660 BBLS refills worth £ 0.95 billion
This final publication is now taking place because lenders participating in the programs had until the end of May to complete the processing of loans requested by businesses. HM Treasury and BBB previously published monthly updates on loans applied for and approved until the end of March 2021
The first loan programs were opened in March 2020 and closed on March 31, 2021 but requests received before closure were processed for approval until the end of May 2021.
The state-owned British Business Bank (BBB), which oversaw the lending programs, will also release final figures by region and sector today.
The payback loan program will run until December 31, 2021 and will ensure that lenders continue to have the confidence to provide support, and that viable businesses can access government-backed financing throughout 2021 after. the disruption of the pandemic. The Recovery Loan Scheme operates across the UK, providing an 80% guarantee to lenders for term loans, overdrafts, and bill and asset financing. The maximum loan amount for all products is £ 10 million; the minimum loan amount is £ 25,000 for term loans and overdrafts, and £ 1,000 for bill and asset financing