British Business Bank Business Support Schemes deliver almost £35BN of loans to more than 830,000 Smaller Businesses
- £23.7bn Bounce Back Loan Scheme
- £9.5bn Coronavirus Business Interruption Loan Scheme
- £1.5bn Coronavirus Larger Business Interruption Loan Scheme
- £55.9m Future Fund
Today the government published new statistics that show 830,140 businesses across the UK have to date benefitted from almost £35 billion in loans and guarantees to support their cashflow during the crisis through schemes delivered by the British Business Bank.
This includes 782,246 Bounce Back Loans worth £23.78 billion, 47,650 loans worth over £9.5 billion through the Coronavirus Business Interruption Loan Scheme and £1.5 billion through the Coronavirus Large Business Interruption Loan Scheme.
New figures for the Future Fund show that, to date, there has been £55.9m worth of convertible loans approved for 53 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 facilities||Cumulative value of approved facilities||Cumulative number of applications|
|Bounce Back Loan Scheme||782,246||£23.78 billion||964,414|
|Coronavirus Business Interruption Loans Scheme||47,650||£9.56 billion||93,305|
|Coronavirus Large Business Interruption Loans Scheme||244||£1.57 billion||615|
- The management information for CBILS, CLBILS and BBLS is reported on behalf of British Business Bank accredited lenders shared directly with HMT by close of business on 8 June 2020. For Future Fund this is reported on behalf of the British Business Bank.
- The applications figure includes approved applications, those applications that are still to be processed, applications that have been declined and those applications that may turn out not to be eligible or cases where customers will decide not to proceed. For CBILS, this number will also include a number of applications that have subsequently been converted to applications for the BBLS scheme. For Future Fund, the number of applications includes only those where both a company and their lead investor have submitted information.
- Future Fund opened for applications on 20 May 2020. Provided that applicants provide the information required during the application process in a timely manner, it is expected that the process will take a minimum of 21 days from initial application to funding being made available. Convertible loans are reported as approved at the point the Convertible Loan Agreement document is issued by Future Fund for signature. The time to applicants subsequently receiving funds will depend on the speed with which they complete the documentation.
Notes to Editors
Covid-19 Loan Schemes
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 is expected to lead 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.
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. The government scheme, which will be developed in partnership with the British Business Bank with the intention of launching for applications in May, will initially be open until the end of September.
About the British Business Bank
The British Business Bank is the UK government’s economic development bank. Established in November 2014, its mission is to make finance markets for smaller businesses work more effectively, enabling those businesses to prosper, grow and build UK economic activity. Its remit is to design, deliver and efficiently manage UK-wide smaller business access to finance programmes for the UK government.
The British Business Bank programmes are supporting more than £7.2bn of finance to over 93,000 smaller businesses (as at end of September 2019).
As well as increasing both supply and diversity of finance for UK smaller businesses through its programmes, the Bank works to raise awareness of the finance options available to smaller businesses:
- The Business Finance Guide (published in partnership with the ICAEW and a further 21 business and finance organisations) impartially sets out the range of finance options available to businesses at all stages – from start-ups to SMEs and growing mid-sized companies. Businesses can take the interactive journey at thebusinessfinanceguide.co.uk.
- The new British Business Bank Finance Hub provides independent and impartial information to high-growth businesses about their finance options, featuring short films, expert guides, checklists and articles from finance providers to help make their application a success. The new site also features case studies and learnings from real businesses to guide businesses through the process of applying for growth finance.
As the holding company of the group operating under the trading name of British Business Bank, British Business Bank plc is wholly owned by HM government and is not authorised or regulated by the Prudential Regulation Authority (PRA) or the Financial Conduct Authority (FCA). The British Business Bank operates under its own brand name through a number of subsidiaries, none of which are authorised and regulated by the FCA.
British Business Bank plc and its principal operating subsidiaries are not banking institutions and do not operate as such. A complete legal structure chart for British Business Bank plc and its subsidiaries can be found on the British Business Bank plc website.