Over £46 billion borrowed through Bounce Back loans

30 Mar

More than 1.5 million Bounce Back loans have been taken out since the coronavirus (COVID-19) support scheme was launched last May, with borrowing by businesses now over £46 billion, according to the Treasury.

The existing loan structure is set to be replaced in April with a new Coronavirus Recovery Loan Scheme, although application details have still not been released. Applications will be open from 6 April, the Treasury has confirmed.

The Recovery Loan Scheme will run until 31 December 2021 and will ensure viable businesses can access government-backed finance throughout 2021 following the disruption caused by the pandemic.

The Treasury's final monthly update on its emergency loan schemes – the Bounce Back Loan Scheme (BBLS), Coronavirus Large Business Interruption Loan Scheme (CLBILS) and the Coronavirus Business Interruption Loan Scheme (CBILS) – shows that more than 1.6 million firms benefited from support to keep them trading.

In total, over 98,000 companies borrowed £23.3 billion through the CBILS, while 716 firms borrowed a further £5.3 billion through the CLBILS.

Craig Beaumont, Chief of External Affairs at the Federation of Small Businesses (FSB), said: '1.6 million small businesses have now been helped to keep going through an awful year by securing Bounce Back loans. As the unlock takes place, the economic recovery will rely on the successor scheme to fire on all cylinders.'

acca logo

CHARTERED CERTIFIED ACCOUNTANTS

We are registered as auditors and regulated for a range of investment business activities in the United Kingdom by the Association of Chartered Certified Accountants – the global body for professional accountants.

NEWSWIRE

Register to receive our monthly Newswire once a month and we'll send you an email packed full of essential business news and handy tax tips to help save you money.

REGISTER NOW