On the eve of the Chancellor’s summer economic update in
Parliament, new figures reveal today that the number of
Bounce Back loans approved for small firms to help them
survive the Coronavirus pandemic has passed the one million
milestone.
The Bounce Back Loan Scheme has been a success in providing
firms with vital government-backed loans at a low,
affordable rate and with no interest or repayments due in
the first year. Today’s update shows that loans worth
£30.93 billion have now been approved to date.
Small companies across the country have accessed loans of
up to £50,000 to help them through the pandemic, reaching
businesses within days- providing immediate support to
those that need it as easily as possible.
Welcoming the milestone, Chancellor said:
Our small businesses are the powerhouse of our economy
and will help drive our recovery as we bounce back from
this global crisis.
We’ve worked hard to give small businesses the help they
need- from loans and grants to paying the wages of their
staff.
I’m delighted that more than a million loans have been
approved – and we will continue to do all we can to
support small business as they reopen their doors in the
weeks ahead.
Business Secretary said:
We promised to stand behind small businesses to get
through this crisis - and we’ve done just that.
As we get Britain’s economic engines firing again, we
will not only support businesses to get back on their
feet, but also do all we can to level up the economy
across every part of our country.
Among the million businesses who have benefitted so far are
Birmingham-based biscuit maker The Shortbread Company and
Willow Bridal Boutique in Cheshire.
Diana Reid, Founder of The Shortbread Company, and a
beneficiary of the loans scheme, said:
Applying for a Bounce Back Loan was a quick and simple
process taking less than 10 minutes and funds were in my
account within 48 hours. The Bounce Back Loan will allow
us to scale and grow The Shortbread Company’s online
store, purchase necessary materials and equipment, and
hire a relevant team to help with various aspects of the
business, for example, social media marketing.
Without the support of a Government Loan, growing the
company would have been a long and tedious process and
perhaps never growing to where we want to be.
, Owner of Willow
Bridal Boutique, said:
The loan has been vital in assuring that we have been
able to pay some of our supplier invoices. This has
covered both our own stock items, but more importantly to
us it has paid for some of our brides’ own wedding gowns
which were due for delivery. We have always, and will
always put our brides first in any situation, and the
fact that we have been able receive their gowns has
provided each bride with much needed happiness and joy,
especially given many have had their wedding day plans
put in jeopardy.
The Bounce Back Loan scheme is one part of the government’s
package of business support that includes: £27.4 billion to
pay the wages of furloughed staff at 1.1 million firms,
over 860,000 business properties benefiting from £10.5
billion of business grants, generous VAT deferrals and
scrapping businesses rates.
Today’s
figures also reveal that businesses have
benefitted from 53,536 loans worth over £11.4 billion
through the Coronavirus Business Interruption Loans Scheme,
394 large businesses have benefitted from £2.58 billion via
the Coronavirus Large Business Interruption Loan Scheme,
and over £379 million has been invested in 376 companies
through the Future Fund.
