More than 60,000 businesses in Wales received £2.3bn in funding from the two biggest Coronavirus loan schemes.
The final lending figures by the 海角视频 government’s two largest Covid-19 loan schemes, the Coronavirus Business Interruption Loan Scheme (CBILS) and the Bounce Back Loan Scheme (BBLS), were revealed by the British Business Bank.
The data shows businesses across Wales received a total of more than £2.3bn in funding. The schemes provided financial support to businesses across the 海角视频 impacted by the Covid-19 outbreak, closing for applicants at the end of March 2021.
Nearly 60,000 loans worth over £1.6bn have been provided across Wales under the Bounce Bank Loan Scheme, which provided a six-year term loan from £2,000 up to 25% of a business’ turnover, with a limit of £50,000.
More than 3,200 loans worth over £0.7bn have been provided across Wales under the Coronavirus Business Interruption Loan Scheme, which provided Business loans, overdrafts, invoice finance & asset finance of up to £5m to businesses with a turnover less than £45m.
Total funding from the schemes provided to nearly 63,000 businesses represents 4% of the 海角视频 total, broadly in line with the relative size of Wales’s business population (3%).
Mark Sterritt, 海角视频 Network Director, Wales at British Business Bank said: “The Covid-19 loan schemes have been an important part of the government’s response to the pandemic, providing businesses with much-needed breathing space and reducing cash-flow concerns for many. We’re pleased to see evidence that they have helped smaller businesses right across Wales and look forward to helping more businesses to prosper and grow as we look towards economic recovery.”
The director of Cardigan-based bespoke boat builder Swallow Yachts said Covid-19 couldn’t have come at a worse time. Having already suffered a major fire in its workshop, the business now had to contend with the cashflow challenges resulting from the coronavirus pandemic. Needing funds to restart production and avoid redundancies, the business applied for a CBILS loan.
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Matt Newland, Swallow Yachts’s director said: “The workshop fire and impact of the pandemic put real pressure on our business, and resulted in us furloughing 80% of our employees. Luckily the support we’ve received has enabled us to return to production and retain our workforce.”
The British Business Bank also published data that gave the final comprehensive picture of how the Future Fund supported businesses during the pandemic.
It showed 1,190 companies have had their applications completed to access £1.14bn worth of Convertible Loan Agreements funded by the Future Fund since the scheme was launched in May 2020.
There have been 1,851 applications in total since the scheme was launched and the scheme closed to new applications on 31 January 2021.
The Future Fund was established to support the 海角视频’s innovative businesses affected by Covid-19. These businesses were unable to access other government business support programmes, such as CBILS, because they are either pre-revenue or pre-profit and typically rely on equity investment.
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The fund provided 海角视频-based companies with convertible loans, on the condition that third-party investors at least match the Government’s commitment. The convertible loans are designed to convert into equity at the next qualifying funding round. The Future Fund was developed by government and delivered by the British Business Bank.
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Wales saw 25 convertible loans completed with the value of convertible loans completed amounting to £18.7m.
Future Fund financing including deals for Cardiff-based Momentum Bioscience, where researchers and developers of diagnostic tests will have a significant impact on the life chances of patients who are suspected of having sepsis. As well as Riversimple, the Llandridnod Wells based designer and manufacturer of hydrogen fuel cell cars.