Covid loan programs provide £ 79.3 billion to businesses
Lenders have made 1,670,939 loans worth Â£ 79.3 billion through state-backed Covid loan programs, the British Business Bank has revealed.
New data has shown that the Rebound Loan Program (BBLS) – which has facilitated 100% government guaranteed loans of up to Â£ 50,000 for microenterprises – has provided 1,560,309 loans with a total value of Â£ 47.36 billion.
And new figures for BBLS top-up loans showed 106,660 loans were approved worth Â£ 950million.
Meanwhile, 109,877 loans worth Â£ 26.39 billion have been facilitated through the Coronavirus Business Interruption Loan Program (CBILS), which has provided loans of up to Â£ 5million, with the government guaranteeing 80% of the loan value.
The companies received 753 loans worth Â£ 5.56 billion under the Coronavirus Business Interruption Loan Program (CLBILS), which targeted large businesses.
Read more: Assetz Capital lends Â£ 370 million via CBILS
London and the South East recorded the highest use of CBILS and BBLS loan facilities (34%), followed by North West England at 11%.
Construction (17%) and wholesale and retail trade (15%) were the areas that received the highest proportion of total loans.
The manufacturing sector received a much higher proportion of CBILS loans (14 percent) than its share of the business population (five percent). Wholesale and retail trade followed (17 percent versus 9.2 percent).
Meanwhile, for BBLS, the wholesale and retail sector accessed a significantly higher proportion of loans (15%) than its share of the business population (9%), followed by the construction sector which received highest proportion of BBLS loans overall 17%).
Read more: Funding Circle launches a new CBILS securitization
“Covid-19 loan programs have been an important part of the government’s response to the pandemic, providing businesses with much-needed respite and reducing cash flow woes for many,” said Catherine Lewis La Torre (pictured ), Managing Director of British Investment Bank.
“We are delighted to see evidence that they have helped small businesses across the UK and look forward to helping more businesses thrive and grow as we face the economic recovery.”
Separate data released by the British Business Bank today revealed that the companies had accessed Â£ 1.14 billion in funding under the future fund.
Funding Circle, Assetz Capital and LendingCrowd all provided funds through CBILS and Funding Circle was the only P2P accredited platform for BBLS.
CBILS, BBLS and CLBILS closed applications on March 31 and were replaced by the payback loan scheme which was launched on April 6.
The BBB has recently accredited many lenders to the program, the most recent of which was Time Finance.