Businesses were supported through the pandemic with nearly £80 billion of emergency government-backed loans, final figures published by HM Treasury have revealed.
Over 1.67 million loans have been provided, protecting millions of jobs and livelihoods across the UK at a time of unprecedented uncertainty and crisis.
Government-backed loan schemes have supported businesses of all sizes across the UK, ranging from big manufacturers and exporters which have received Coronavirus Large Business Interruption Loans (CLBILS) loans, to innovative tech companies which have benefited from the Future Fund, as well as the millions of smaller businesses which have received a Bounce Back Loan (BBL).
The government is committed to helping UK businesses during the next stage of the recovery. Firms continue to benefit from a wide range of schemes, including furlough, the Recovery Loan Scheme, business rates and VAT relief and an extended moratorium on commercial evictions.
More than 1.5 million Bounce Back Loans worth £47 billion were provided during the pandemic, with £26 billion also provided as Coronavirus Business Interruption Loans (CBILS) as well as over £5 billion worth of CLBILS.
A further £1.12 billion of funding has been provided to 1,140 high growth firms through the Future Fund. This scheme, which closed on 31st January, was designed to support innovative UK companies that typically rely on equity investment and whose access to investment was affected by Covid-19.
Businesses will continue to access government-back loans through the new Recovery Loan Scheme, which opened in April and runs until the end of the year. Innovative firms will also have access to the new Future Fund: Breakthrough scheme will launch later this month.
In addition to providing over £350 billion worth of support to businesses through the pandemic, the government has also introduced the Pay as You Grow scheme to support businesses repaying coronavirus loans. This provides the option to pause repayments for up to six months and to extend repayment periods from six to ten years to aid their recovery and ensure public funds are recovered.
Chancellor Rishi Sunak said”We promised to stand by businesses at every stage of the pandemic and we have delivered on that promise.”
“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.”
Responding to the final data figures, Stephen Pegge, Managing Director of Commercial Finance at UK Finance, said “Throughout the pandemic the banking and finance industry has provided an unprecedented level of support to businesses of all sizes across the length and breadth of the country. This includes nearly £80 billion worth of lending through the government-backed loan schemes, distributed geographically in proportion to UK economic activity and to sectors most in need of support. This is alongside other measures such as overdraft extensions and capital repayment holidays.”
“With the country starting to unlock in the coming weeks, we know that many firms are still facing uncertainty and the industry will continue to stand behind businesses and support them through the economic recovery.”
|Loan type||Value of loans approved||Total loans approved|
|Bounce Back Loans (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||£1.1 billion||1,190|
*includes 106,660 BBLS top-ups worth £0.95bn