Recovery Loan Scheme (iterations 1 & 2) Performance Data as at 30 June 2023

• The value for ‘Claimed’ is the amount claimed under the guarantee

• The value for ‘Settled’ is the amount paid out under the guarantee

• The value for ‘Fully Repaid’ is the full facility amount

• The value for all other life events is the outstanding balance

Arrears – facilities with missed repayments are deemed to be in arrears and are tracked in 30, 60 and 90 day cohorts by lenders to manage risk. Lenders report monthly arrears updates through the Scheme portal on a “best endeavours” basis. Some lenders submit arrears via the automated (API) functionality in the Scheme portal, but it is not always possible for smaller lenders to integrate with this functionality so arrears are sometimes entered manually. Facilities in arrears that have moved to a later life-cycle stage (such as Defaulted) will be reported in the later life-cycle stage but may still carry arrears. At the time of this event occurring, this is an actual balance, and not estimated.

Claimed – the Lender has submitted a claim under the guarantee. Facilities sit in the claimed status while the British Business Bank awaits/processes the invoice for the claim and runs relevant checks. Under the terms of the guarantee the claim must be paid within 30 days of receipt of the claims invoice.

Defaulted – facilities where the lender has issued a formal demand to the borrower. At the time of this event occurring, this is an actual balance, and not estimated.

Drawn value – the total amount for facilities which have been drawn down by the borrower.

Facility or facilities – refers to a Recovery Loan Scheme facility or facilities, being either a term loan facility, a revolving credit facility, an invoice finance facility or an asset finance facility (as applicable) made available by an accredited lender to a borrower.

Fully repaid – the facility is considered closed as there is no further outstanding balance on the facility (the borrower has repaid the full amount).

On schedule – the facility is being repaid as expected, including facilities for which repayment is not yet due.

Outstanding balance – when used to describe on schedule is a projected figure based on the amortisation profile of individual facilities. It uses existing data points to identify the remaining facility value but is limited due to some lender data not being available.

Scheme portal – the database hosted by the Bank as part of its role in administering the schemes. It is used by all accredited scheme lenders to report on guaranteed facilities and make claims under the guarantee agreement. The reporting requirements have evolved over time. The portal is updated at various points in a facility lifecycle as reported by lenders.

Settled – settlement has been made following a lender making a claim. Once the guarantee claim is processed and payment is released, the facility is marked as settled on the Scheme portal.

Suspected fraud – drawn facilities which are currently flagged as suspected fraud by lenders. This flag can be added or removed by lenders at any point, and only the latest position can be provided. Suspected fraud value is a subset of the drawn value.