Government-backed support during the pandemic through the various Covid loan schemes amounted to 1.6 million business loans.
Image source: Her Majesty’s Treasury
Pandemic-hit businesses in the UK have received government-backed loans worth £79.3billion, according to new data released by 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 are looking to the post-covid economy and an eventual recovery.
As businesses continue to benefit from the Recovery Loan Scheme, emergency support which began in the wake of the pandemic in April 20200 and ended in May 2021.
A total of 1,670,939 loans were issued through banks, neo-banks and alternative lenders through the Bounce Back Loans Scheme, Coronavirus Business Interruption Loans Scheme and Coronavirus Large Business Interruption Loans Scheme.
Over 1.5m rebound loans worth £47bn have been provided during the pandemic, of which £26bn has also been provided as coronavirus business interruption loans ( CBILS) as well as over £5 billion of CLBILS.
Additional funding of £1.12 billion has been provided in the form of convertible loans to 1,140 high growth companies through the Future Fund.
Chancellor Rishi Sunak said: “We have promised to support businesses at every stage of the pandemic and we have delivered on that promise. I am proud of the extraordinary extent of support we have provided since March last year – we will continue to support 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% guarantee to lenders for term loans, overdrafts, and invoice 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 bill and asset finance.