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 Rishi Sunak 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 Alok Sharma 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.
Helen Williams, 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.