During the Covid crisis, companies across the UK received government-backed emergency loans worth nearly £ 80 billion.
More than 1.6 million loans approved between April 2020 and May 2021, including repayable loans and coronavirus business interruption loans
Businesses continue to benefit from an extensive package of support, including a compensation scheme, extended leave scheme, and tax incentives.
More than 1.67 million loans have been disbursed, protecting millions of jobs and livelihoods across the UK at a time of unprecedented uncertainty and crisis.
Government-funded lending schemes support businesses of all sizes across the UK, from large manufacturers and exporters who have received coronavirus-related business interruption loans (CLBILS) to innovative technology companies that have benefited from the Future Fund, as well as millions of small businesses. who received the Bounce Back Loan (BBL).
The government intends to help British businesses in the next phase of recovery. Firms continue to benefit from a wide range of schemes, including layoffs, loan recovery schemes, commercial rates and VAT exemptions, and an extended moratorium on commercial evictions.
Chancellor Rishi Sunak said:
We have pledged to support business at every stage of the pandemic, and we have delivered on that promise.
I am proud of the extraordinary degree of support that we have offered since last March – we have worked for a long time from the beginning, and we will continue to support businesses and protect people’s jobs as we recover from the coronavirus.
During the pandemic, over 1.5 million repayable loans worth £ 47 billion were disbursed, of which £ 26 billion were also disbursed as coronavirus business interruption loans (CBILS), as well as CLBILS worth more than 5 billion pounds sterling.
An additional £ 1.12 billion was provided to 1,140 fast-growing companies through the Future Fund. The scheme, which closed on 31 January, was designed to support innovative UK companies that typically rely on equity investment and whose access to investment has been affected by Covid-19.
Businesses will continue to access government-backed loans through a new recovery loan scheme that opened in April and will run through the end of the year. Innovative firms will also have access to a new Future Fund: Breakthrough scheme, which will launch later this month.
In addition to providing over £ 350 billion in support to businesses during the pandemic, the government has also introduced a Pay as You Grow scheme to support businesses paying off coronavirus loans. This provides the option to suspend payments for up to six months and extend repayment periods from six to ten years to help reimburse them and ensure public funds are recovered.
|Loan type||Approved Loan Cost||Total approved loans|
|Return of credits (BBLS)||£ 47.36 billion *||1,560,309|
|Coronavirus Business Interruption Loans (CBILS)||£ 26.39 billion||109,877|
|Coronavirus Large Business Interruption Loans (CLBILS)||£ 5.56 billion||753|
|Future fund||£ 1.1bn||1.190|
* Includes 106,660 BBLS top-ups worth £ 0.95 billion.
This latest publication is taking place now because lenders participating in the schemes had to complete processing of loans requested by businesses by the end of May. Her Majesty’s Treasury and the BBB previously published monthly updates on loans that were applied for and approved by the end of March 2021.
The first lending schemes opened in March 2020 and closed on March 31, 2021, but applications received prior to closure were being processed for approval by the end of May 2021.
The state bank British Business Bank (BBB), which oversees lending schemes, is also to release final data by region and sector today.
The recovery loan scheme will run until December 31, 2021 and will provide lenders with confidence to provide support, and viable businesses will be able to access government-backed funding during 2021 after the pandemic ends. The Recovery Loan Scheme operates throughout the UK, providing lenders with an 80% guarantee on term loans, overdrafts, invoices 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 accounts and asset financing.