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BRITISH BUSINESS BANK BUSINESS SUPPORT SCHEMES DELIVER OVER £40BN OF LOANS TO MORE THAN 972,000 SMALLER BUSINESSES

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  • £28bn Bounce Back Loan Scheme 
  • £10.5bn Coronavirus Business Interruption Loan Scheme
  • £2.1bn Coronavirus Larger Business Interruption Loan Scheme
  • £236m Future Fund  

Today the government published new statistics that show 972,026 businesses across the UK have to date benefitted from £40.72 billion in loans and guarantees to support their cashflow during the crisis through schemes delivered by the British Business Bank.

This includes 921,229 Bounce Back Loans worth £28.09 billion, 50,482 loans worth over £10.5 billion through the Coronavirus Business Interruption Loan Scheme and £2.1 billion through the Coronavirus Large Business Interruption Loan Scheme.

New figures for the Future Fund show that, to date, there has been £236m worth of convertible loans approved for 252 companies since the fund opened for applications on 20 May. This sum has been matched by at least the same amount from third-party investors.

 Cumulative number of approved facilitiesCumulative value of approved facilitiesCumulative number of applications
Bounce Back Loan Scheme921,229£28.09 billion1,123,683
Coronavirus Business Interruption Loans Scheme50,482£10.53 billion98,975
Coronavirus Large Business Interruption Loans Scheme315£2.10 billion709
Future Fund 252 £236.2m 623
June 23 2020

Source: British Business Bank, June 23 2020

Covid-19 Loan Schemes

Future Fund

The Future Fund will support the UK’s innovative businesses currently affected by Covid-19. These businesses have been unable to access other government business support programmes, such as CBILS, because they are either pre-revenue or pre-profit and typically rely on equity investment. The scheme will deliver an initial commitment of £250m of new government funding through convertible loan notes which will be unlocked by private investment on a match funded basis. Developed by government and delivered by the British Business Bank, the Future Fund launched for applications in May and will initially be open until the end of September.

Bounce Back Loans Scheme (BBLS)

BBLS is a demand-led scheme offering lending that targets small and micro businesses, providing loans from £2k up to 25% of the business’ turnover with a maximum loan of £50k. Providing lenders with a 100% government-backed guarantee and standardising the application form has led to a faster process with many loans becoming available within days. The Bounce Back Loans Scheme enables businesses to obtain a six-year term loan at a government set interest rate of 2.5% a year. The government will cover interest payable in the first year.

Coronavirus Business Interruption Loans Scheme (CBILS)

CBILS is a demand-led scheme offering lending to smaller businesses with turnover of up to £45m. Invoice finance and asset finance facilities are available from £1k to £5m, while term loans and revolving credit facilities are available from £50k to £5m (the lower limit for these has increased from £1k following the introduction of BBLS). The government makes a payment to cover interest and lender-levied fees under CBILS for the first 12 months. Following the launch of the Bounce Back Loans Scheme, CBILS will no longer be available for new loans and revolving credit facilities (overdrafts) of £50,001 or less but remains available for Asset and Invoice Finance facilities below £50,001.

Coronavirus Large Business Interruption Loans Scheme (CLBILS)

CLBILS is a demand led scheme targeted at larger businesses with a turnover of more than £45m. It offers term loans, revolving credit facilities, invoice finance and asset finance. The maximum amount available through CLBILS to a borrower and its group has been increased from £50m to £200m. Term loans and revolving credit facilities over £50m will be offered by CLBILS lenders which have secured additional accreditation. The maximum size for invoice finance and asset finance facilities remains at £50m. Companies borrowing more than £50m through CLBILS will be subject to further restrictions on dividend payments, senior pay and share buy-backs during the period of the loan.

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