Covid-19 corporate finance schemes surpass £50 billion milestone

More than 1.2 million Government-guaranteed loans worth £52.7 billion have now been delivered to businesses affected by Covid-19, the latest figures have revealed.

The statistics, published by the British Business Bank (BBB), break down how the Government’s multi-billion-pound rescue package has been distributed among struggling firms.

The report shows that as of 18 August 2020, 1,235,779 affordable loans have been approved and issued to business customers.

This includes 1,174,854 Bounce Back Loans (BBLs) worth £35.5 billion, 60,409 loans worth £13.7 billion through the Coronavirus Business Interruption Loan Scheme (CBILS) and 516 loans worth £3.5 billion through the Coronavirus Large Business Interruption Loan Scheme (CLBILS).

This month’s report also includes Future Fund figures for the first time. The newly launched scheme issues convertible loans of between £125,000 to £5 million to “innovative companies” which are facing financing difficulties due to the coronavirus outbreak.

According to the figures, there has been £588m worth of convertible loans approved for 590 companies since the fund opened for applications on 20 May.

Announcing the scheme earlier this year, the Treasury said convertible loans “may be a suitable option for businesses that typically rely on equity investment” and are “unable to access other government business support programmes because they are either pre-revenue or pre-profit”.

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Maung Aye
Maung is a partner in our Corporate and Commercial department. He joined Mackrell.Solicitors following corporate law positions in London and in a leading regional firm in Essex. Maung read European Legal Studies at Lancaster University and the Università degli Studi di Trento and is a fluent Italian speaker.