- new statistics reveal three bounce loans have been issued every minute since the launch in May 2020
- emergency loans have provided nearly £ 180bn in total since March 2020
- the Covid Corporate Financing Facility (CCFF) alone has supported companies responsible for 2.5 million jobs
The Treasury’s latest monthly update on its emergency lending programs – the rebound loan program, the Coronavirus Large Business Interruption Loan Program, the Coronavirus Business Interruption Loan Program, and Covid Corporate Finance Mechanism – show more than 1.6 million businesses have been supported to keep them. trade and protect jobs and livelihoods.
In total, these programs have provided nearly £ 180 billion in loans to date, supporting more than a quarter of businesses in the UK. On its own, CCFF has directly supported businesses that employ nearly 2.5 million people in the UK, including those in the automotive industry, travel, hospitality and department stores.
Chancellor of the Exchequer, Rishi Sunak, said:
I said we would do whatever it takes to protect jobs and livelihoods and that is exactly what we did.
I am delighted that our rebound loan program has worked so effectively that it has issued three loans per minute since its launch last May. This means that every 20 seconds a hard-working small business owner has benefited from this support.
We will continue to protect jobs with our new Stimulus Loan program – part of our larger jobs plan – as we emerge from this crisis.
Craig Beaumont, FSB Head of External Affairs, said:
1.6 million small businesses have now been helped through a terrible year by obtaining Bounce back loans. As the unlocking progresses, the economic recovery will rely on the successor scheme to pull all the cylinders.
|Type of loan||Value of approved facilities||Number of approved installations|
|Coronavirus Business Interruption Loan Program (CBILS)||£ 23.28bn||98 344|
|Large Business Coronavirus Disruption of Service Loan Program (CLBILS)||£ 5.30bn||716|
|Bounce Loan Program||£ 46.53bn *||1,531,095|
|Covid Business Funding Mechanism (CCFF)||£ 104bn of commercial paper **||304|
|Total funding||£ 179.11 billion||1,630,459|
CBILS, CLBILS and BBLS close for new applications next week (March 31, 2021). A new recovery loan program will be open for applications on Tuesday April 6 to ensure support is still available for those who still need it.
The Stimulus Loan Program will last 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 finance throughout 2021 through 2021. following the disruption of the pandemic.
The CCFF also closed its doors to new issues from March 23, 2021. It will continue to fund companies with outstanding loans under the scheme until March 2022 at the latest.
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. The new Future Fund: Breakthrough program will launch in early summer 2021.
The Recovery Loan Scheme operates across the UK, providing an 80% guarantee to lenders for term loans, overdrafts, and bill and asset funding. 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 funding.
Once received, the funding can be used for legitimate business purposes, including growth and investment. The program will be administered by the British Business Bank through a diverse network of accredited commercial lenders. Any business enterprise in the UK is eligible to apply, and applicants will need to demonstrate to lenders that they are viable (or would be without the pandemic) and have been affected by the pandemic.
* The value of approved BBLS facilities includes BBLS loans that have been “reloaded”. A renewed loan will always be declared as a loan to avoid double counting the number of approved installations.
** Approved value refers to the total line of credit for the 304 qualifying businesses, which peaked at c. 104 billion pounds sterling. The total issued in the scheme by 107 companies was c. £ 38 billion.