UK Covid 19 business loans total £80 billion
Government-backed support through the pandemic through the various Covid loan schemes amounted to 1.6 million loans to firms.
Pandemic hit businesses in the UK have received government-guaranteed loans worth £79.3bn, according to new data published by the HM Treasury.
With the end of government restrictions in sight, as well as the end of support measures such as the furlough scheme, businesses and lenders alike are looking to the post covid economy and eventual recovery.
While businesses continue to benefit from the Recovery Loan Scheme, emergency support that began in the wake of the pandemic in April 20200 and ended in May 2021.
In total 1,670,939 loans were made through banks, neo banks and alternative lenders via the Bounce Back Loans Scheme, Coronavirus Business Interruption Loans Scheme and the Coronavirus Large Business Interruption Loans Scheme.
More than 1.5 million Bounce Back Loans worth £47bn were provided during the pandemic, with £26bn also provided as Coronavirus Business Interruption Loans (CBILS) as well as over £5bn worth of CLBILS.
A further £1.12bn of funding has been provided in the form of convertible loans to 1,140 high growth firms through the Future Fund.
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.”
The Recovery Loan Scheme, which opened in April, runs until the end of the year. It provides an 80 per cent guarantee to lenders for term loans, overdrafts, and invoice and asset finance. The maximum loan size across all products is £10m. The minimum loan size is £25,000 for term loans and overdrafts, and £1,000 for invoice and asset finance.