Coronavirus loan schemes benefiting businesses in all corners of UK, reveals new analysis from British Business Bank

Press release 07 August 2020

  • Distribution of loans offered tracks business population of each region
  • East of England reports largest usage of CBILS outside London and the South East
  • North West reports largest usage of BBLS outside London and the South East
  • Construction sector has received highest proportion of total loans (17%), followed by Wholesale and Retail (16%)

New data published today reveals the regional distribution of loans under the Coronavirus Business Interruption Loan Scheme (CBILS) and the Bounce Back Loan Scheme (BBLS). The data, published by the British Business Bank, shows that the proportion of overall loans in each of the nine English regions and three Devolved Nations matches closely their respective share of the UK business population.

The East of England (11% of the total number of CBILS loans UK-wide) has the highest usage of CBILS outside London and the South East (33%) while the North West (11% of the total number of BBLS loans UK-wide) reports highest usage of BBLS outside London and the South East (34%).

Both schemes provide financial support to businesses across the UK that are losing revenue and seeing their cashflow disrupted, as a result of the Covid-19 outbreak.

Other regions demonstrating strong use of CBILS are the North West (10%) and South West (9%). Take up of CBILS in the Devolved Nations is comparable to the proportion of the local business population of each nation, with take up in Scotland (5%), Wales (3%) and Northern Ireland (2%).

Other regions demonstrating strong use of BBLS include the East of England (10%) West Midlands (8%), South West (8%), Yorkshire and the Humber (7%) and the East Midlands (6%). Take up in the Devolved Nations is Scotland (6%), Wales (4%) and Northern Ireland (2%).

The Wholesale and Retail sector has accessed a significantly higher proportion of CBILS loans (19%) than its share of the business population (9%), with Manufacturing (13% v 5%) and Accommodation and Food Services (9% v 3%) following a similar pattern.

The Wholesale and Retail sector also accessed a relatively high proportion of Bounce Back Loans compared to its business population share (16% v 9%), as did businesses in Accommodation and Food Services (8% v 3%) and Real Estate Services (6% v 2%).

A key objective for the British Business Bank is to identify and help reduce regional imbalances in access to finance for smaller businesses across the UK. It is welcome to see in the data that these schemes are helping businesses across the UK’s three Devolved Nations and nine English regions to access the finance they need to survive and stabilise, putting them in a better position to grow as we move into recovery. Keith Morgan Chief Executive Officer of the British Business Bank
Throughout this crisis, we have backed business of all sizes in every corner of the UK. The schemes put in place by the government-owned British Business Bank have provided some much-needed breathing space for businesses as they deal with the challenges posed by coronavirus. Government support has helped firms right across Britain, not just in keeping businesses going but now enabling thousands to bounce back in a safe, Covid-secure manner. Paul Scully Small Business Minister
Lenders understand that times are tough for businesses up and down the country, but the industry has a clear plan to help them get through this crisis. Whether you’re a sole trader in a rural area or a company with hundreds of employees in a major city, the banking and finance industry stands ready to offer the right support to suit your needs and these figures demonstrate that funding is well distributed throughout the UK. Businesses should remember that any lending provided under government-backed schemes is a loan not a grant, and so should carefully consider their ability to repay before applying. Stephen Pegge Managing Director of Commercial Finance at UK Finance

Breakdown of loans offered by region – CBILS

Region Number of CBILS Loans Volume of finance under CBILS (£) % of offered facilities % of business population
East Midlands 3,325 776,952,806 7% 6%
East of England 4,669 1,020,035,597 11% 10%
London 7,790 2,001,937,526 17% 19%
North East 1,233 263,944,238 3% 3%
North West 4,699 1,129,802,539 10% 10%
Northern Ireland 836 237,817,722 2% 2%
Scotland 2,693 587,638,410 5% 6%
South East 7,376 1,585,052,125 16% 16%
South West 4,283 927,187,748 9% 10%
Wales 1,391 303,205,680 3% 4%
West Midlands 3,770 871,365,361 9% 8%
Yorkshire and The Humber 3,419 741,647,567 8% 7%
Unknown 137 39,998,100 0% 0%

Breakdown of facilities offered by region – BBLS

Region Number of BBL facilities Volume of finance under BBLS (£) % of offered facilities % of business population
East Midlands 67,515 1,982,958,564 6% 6%
East of England 100,476 3,060,902,628 10% 10%
London 210,102 6,983,181,564 20% 19%
North East 33,651 939,452,112 3% 3%
North West 112,444 3,338,019,322 11% 10%
Northern Ireland 25,491 809,032,542 2% 2%
Scotland 63,649 1,844,452,115 6% 6%
South East 144,152 4,347,184,714 14% 16%
South West 84,593 2,408,463,217 8% 10%
Wales 40,195 1,115,836,982 4% 4%
West Midlands 84,773 2,593,303,126 8% 8%
Yorkshire & the Humber 73,962 2,185,143,320 7% 7%
Unknown 1,665 51,761,340 0% 0%

Breakdown of facilities offered by sector – CBILS

SIC Group Description Value of Loans Offered (£) Number of Loans Offered Proportion of Offered Facilities Proportion of UK Business Population
Agriculture, Forestry and Fishing 1,474,477,665 45,875 3% 2.6%
Mining and Quarrying; Electricity, Gas and Air Conditioning Supply; Water Supply; Sewerage, Waste Management and Remediation Activities 368,339,204 11,431 1% 0.7%
Manufacturing 2,841,461,426 89,368 6% 4.8%
Construction 7,684,762,143 260,912 17% 16.6%
Wholesale and Retail Trade; Repair of Motor Vehicles and Motorcycles 8,234,342,759 231,055 15% 9.2%
Transportation and Storage 2,280,611,009 86,060 6% 5.8%
Accommodation and Food Service Activities 4,276,463,494 119,401 8% 3.7%
Information and Communication 2,121,404,486 71,504 5% 6.4%
Financial and Insurance Activities 421,094,101 12,571 1% 1.5%
Real Estate Activities 3,238,644,323 91,421 6% 2.1%
Professional, Scientific and Technical Activities 4,874,562,882 172,513 11% 14.6%
Administrative and Support Service Activities 3,269,345,759 111,940 7% 8.8%
Education 788,508,857 34,220 2% 5.4%
Human Health and Social Work Activities 1,881,659,889 63,628 4% 6.4%
Arts, Entertainment and Recreation 1,030,041,420 41,482 3% 5.2%
Other Service Activities 2,333,709,344 108,695 7% 6.1%
Not specified by borrower 63,658,105 2,688 0% 0.0%

Breakdown of facilities offered by sector – BBLS

Sector Number of BBLS facilities Volume of finance under BBLS (£) % of BBLS facilities % of business population
Construction 173,452 5,089,564,622 17% 17.7%
Wholesale and Retail Trade; Repair of Motor Vehicles and Motorcycles 168,158 5,936,102,609 16% 9.3%
Professional, Scientific and Technical Activities 115,559 3,220,283,980 11% 14.8%
Accommodation and Food Service Activities 88,427 3,101,188,706 8% 3.4%
Administrative and Support Service Activities 75,324 2,181,381,315 7% 8.7%
Real Estate Activities 63,032 2,216,951,641 6% 1.9%
Manufacturing 62,363 1,968,644,729 6% 4.7%
Other Service Activities 60,165 1,314,396,167 6% 5.8%
Transportation and Storage 53,604 1,409,541,297 5% 6.1%
Information and Communication 46,167 1,346,984,784 4% 6.3%
Human Health and Social Work Activities 41,821 1,223,162,496 4% 6.1%
Agriculture, Forestry and Fishing 27,656 901,540,073 3% 2.7%
Arts, Entertainment and Recreation 26,169 657,683,874 3% 4.9%
Education 22,469 511,326,893 2% 5.2%
Financial and Insurance Activities 8,788 290,886,492 1% 1.5%
Mining and Quarrying; Electricity, Gas and Air Conditioning Supply; Water Supply; Sewerage, Waste Management and Remediation Activities 7,866 251,165,017 1% 0.6%
Unknown 1,648 38,886,850 0% 0.0%

Note: Regional and sectoral Coronavirus Large Business Interruption Scheme data has not been included in this analysis due to data protection and commercial considerations. Data on CBILS and BBLS schemes drawn from the British Business Bank portal, 2 August 2020.

A constituency-level breakdown of lending under CBILS and BBLS is available on the British Business Bank website.

Offered figures published by the British Business Bank may differ from aggregate approved figures published by HM Treasury due to a time lag between the two data sources, and since some borrowers may decide not to proceed with an approved application.

Further Information

Notes to editors

Bounce Back Loan 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 Loan 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 Loan 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 government makes a payment to cover interest and lender-levied fees under CBILS for the first 12 months.

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 were supporting more than £7.7bn of finance to over 94,900 smaller businesses at end of December 2019. Since March 2020, the British Business Bank has launched four new Coronavirus business loan schemes, delivering tens of billions of pounds of finance to over a million businesses.

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 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 site also features case studies and lessons 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 through a number of subsidiaries, none of which are authorised or regulated by the FCA or the PRA.

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.