- new statistics reveal that three Bounce Back Loans were issued every minute since May 2020 launch
- emergency loans provided almost £180 billion in total since March 2020
- the Covid Corporate Financing Facility (CCFF) scheme alone supported firms responsible for 2.5 million jobs
The Treasury’s final monthly update on its emergency loan schemes – the Bounce Back Loan Scheme, Coronavirus Large Business Interruption Loan Scheme, Coronavirus Business Interruption Loan Scheme, and the Covid Corporate Financing Facility – show that more than 1.6 million firms benefited from support to keep them trading and protect jobs and livelihoods.
In total, these schemes have provided almost £180 billion worth of lending to date, supporting over a quarter of businesses in the UK. The CCFF alone has directly supported firms that employ almost 2.5 million people in the UK, including those in the car industry, travel, hospitality, and high street stores.
The 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 have done.
I’m delighted that our Bounce Back Loan scheme worked so effectively that it issued three loans every minute since its launch last May. That means every 20 seconds a hardworking small business owner benefited from this support.
We’ll continue to protect jobs through our new Recovery Loan Scheme – part of our wider Plan for Jobs – as we move out of this crisis.
Craig Beaumont, Chief of External Affairs at FSB, said:
1.6 million small businesses have now been helped to keep going through an awful year by securing Bounce back loans. As the unlock takes place, the economic recovery will rely on the successor scheme to fire on all cylinders.
- The Recovery Loan Scheme operates UK-wide, providing an 80% guarantee to lenders for term loans, overdrafts, and invoice and asset finance. The maximum loan size across all products is £10 million; the minimum loan size is £25,000 for term loans and overdrafts, and £1,000 for invoice and asset finance.
- Once received, the finance can be used for any legitimate business purpose, including growth and investment. The scheme will be administered by the British Business Bank via a diverse network of accredited commercial lenders. Any business trading in the UK is eligible to apply, and applicants will need to demonstrate to lenders that they are viable (or would be were it not for the pandemic) and have been impacted by the pandemic.