The Government has now delivered more than £27 billion in corporate finance through its landmark Covid-19 loan schemes, it has been revealed.
The figures, published by the British Business Bank (BBB), include 608,000 Bounce Back Loans (BBLS) worth £18.4 billion, 43,000 Coronavirus Business Interruption Loan Scheme (CBILS) loans worth £8 billion, and £820 million through the Coronavirus Large Business Interruption Loan Scheme (CLBILS).
The figures come after the launch of the BBLS in April. Under the new scheme, small and medium-sized enterprises (SME) can apply to borrow between £2,000 and £50,000 with affordable terms. The loans are interest-free for the first 12 months and 100 per cent Government backed, meaning there is no need to put up any personal guarantees.
For larger businesses with turnovers of up to £45 million, the CBILS offers invoice finance and asset finance facilities of between £1,000 and £5 million. Like the BBLS, the loans are interest-free for the first 12 months, while the Government will guarantee up to 80 per cent of the loan value.
The CLBILS, meanwhile, is targeted at the largest businesses with turnovers of more than £45 million. Eligible businesses can borrow between £50 million and £200 million in loans, revolving credit facilities, invoice finance and asset finance.
Commenting on the success of each scheme, the BBB said: “Today the government published new statistics that show businesses have to date benefitted from over £27 billion in loans and guarantees to support their cashflow during the crisis through schemes delivered by the British Business Bank.”