Businesses borrowed nearly £80 billion throughout coronavirus pandemic, new figures reveal

Almost £80 billion in emergency coronavirus loans were handed to struggling businesses throughout the coronavirus pandemic, new figures have revealed.

The report, published by HM Treasury, shows that millions of businesses were supported through initiatives such as the Bounce Back Loans Scheme (BBLS) and the Coronavirus Business Interruption Scheme (CBILS).

According to the final figures, some 1.67 million emergency loans were approved between April 2020 and May 2021, when the schemes came to an end.

This includes £47.4 billion of support through the BBLS, 109,877 loans worth £26.39 billion through the CBILS, and 753 loans worth £5.56 billion through the Coronavirus Large Business Interruption Loan Scheme (CLBILS).

In addition, the Future Fund – designed for high growth, pre-profit start-ups – supported 1,190 businesses with £1.14 billion of Convertible Loan Agreements between May 2020 and 31 January 2021.

The various schemes have now been replaced by the new Recovery Loan Scheme, which aims to support access to finance for UK businesses as they “grow and recover from the disruption of the COVID-19 pandemic”.

Commenting on the figures, Catherine Lewis La Torre, Chief Executive Officer of the British Business Bank, said: “The Covid-19 loan schemes have been an important part of the government’s response to the pandemic, providing businesses with much-needed breathing space and reducing cash-flow concerns for many.

“We’re pleased to see evidence that they have helped smaller businesses right across the UK and look forward to helping more businesses to prosper and grow as we look towards economic recovery.”

Chancellor Rishi Sunak added: “I am proud of the extraordinary extent of support we’ve offered since March last year – we will continue to back businesses and protect people’s jobs as we recover from coronavirus.”

For help and advice with related matters, please get in touch with our expert team today.

Posted in Covid-19 - Loans, Grant and Deferrals.