Government-backed loans embraced by construction and retail sectors
New data from the British Business Bank has shown that businesses in the construction and retail sectors have taken the lions’ share of government backed loans.
To date, 17% of all funding under the Bounce Back Loan Scheme (BBLS) and 14% of Coronavirus Business Interruption Loans (CBILS) have gone to construction companies. A respective 16% (BBLS) and 19% (CBILS) has gone to the wholesale and retail sector.
This data, which has been gathered since the beginning of the Covid-19 crisis, shows to what extent different sectors have relied on these initiatives.
It was also revealed that, at the other end of the scale, finance and insurance companies made up only 1% of all CBILS loans and 1% of BBLS loans.
Small business minister Paul Scully emphasised the support that had been provided for business of all sizes across the UK, and said:
“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.”
As well as revealing which sectors took advantage of the loan schemes, the data also compared regional variations.
Businesses in London and the south-east have received the highest proportion of both the CBILS (33%) and the BBLS (34%). The next highest share of CBILS loans went to the east of England, which received an 11% share.
The north-west of the country took the second highest share of the BBLs outside of London and the south-east, with 11%.
The CEO of the British Business Bank, Keith Morgan, said: “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.”
If your business has been denied funding through either of these loan schemes, or you would benefit from additional funding to support your company through these unprecedented times, Hilton-Baird Financial Solutions could help.
An award-winning commercial finance broker with more than 20 years’ experience, we have a proven track record of introducing businesses to the most suitable finance facilities.
Contact our team today on 0800 9774833 or request a call back at a convenient time to discuss your requirements.