One in every six South West companies that applied for financial support during the coronavirus pandemic has had their applications approved – meaning £3.3billion was handed to firms.
海角视频 Finance, the body which represents leading banks, has revealed that 88,900 businesses in the South West have received funding.
Before the pandemic, the average number of loans and overdrafts approved each year by the 10 largest lenders was 29,000, over the previous five years.
This analysis complements HM Treasury data which shows the banking and finance industry has provided £3.3billion in loans and facilities to businesses across the South West via the schemes such as the Bounce Back Loan Scheme (BBLS) or Coronavirus Businesses Interruption Loan Scheme (CBILS).
This means that 16% of businesses in the region are backed by the banking and finance industry through a Covid-19 loan scheme.
In just over three months since the launch of the scheme, 84,600 businesses in the region have received a Bounce Back Loan, with the total value of support reaching just over £2.4billion.
Aimed at small and micro businesses, these loans are 100% Government-backed and provide finance between £2,000 and £50,000.
Lenders have also provided finance worth £930million to 4,300 companies in the South West through the CBILS, which continues to offer a lifeline to firms across the region.
Most Read
Supporting businesses of all sizes during the pandemic crisis remains lenders’ top priority, 海角视频 Finance said.
Alongside the Government-backed lending schemes, the industry has a broad range of additional measures for businesses whose finances continue to be squeezed, from working capital extensions, to overdraft extensions and capital repayment holidays.
The support has helped a range of businesses across the South West including Parlour Farm Kitchens in Cirencester. The bespoke kitchen company utilised a six figure CBILS package from NatWest to safeguard 25 jobs and secure the future of the company, allowing it to continue paying suppliers and rent following three months of no income.
In other examples, Lloyds Bank supported Gloucestershire-based dealership Warner Cars with a CBILS package to support the firm’s working capital needs.
And Papadeli, a Bristol-based caterer, delicatessen and cookery school sought Bounce Back Loan support from Barclays to help its staff, as well as cover day to day costs and invest in fresh stock.
Also, the COVID-19 shutdown prevented people from moving house and businesses relocating to new premises. This was highly damaging to Cornwall’s Going Places Removals, which saw its trade come to a sudden halt almost overnight.
Needing money to pay creditors and cover vital overheads, the company sought help via the Bounce Back Loan Scheme (BBLS). A quick 10-minute application with Lloyds let to the business receiving the money into their bank account within two days.
Don’t miss
How to contact William Telford and Business Live
Business Live's South West Business Reporter is William Telford. William has more than a decade's experience reporting on the business scene in Plymouth and the South West. He is based in Plymouth but covers the entire region.
To contact William: Email: william.telford@reachplc.com - Phone: 01752 293116 - Mob: 07584 594052 - Twitter: - LinkedIn: - Facebook:
Stay in touch: BusinessLive newsletters have been re-designed to make them even better. We send morning bulletins straight to your inbox on the latest news, views and opinion in the South West. Get our breaking news alerts and weekly sector reviews too. Sign up now - it's free and it only takes a minute. To sign up for Business Live's daily newsletters click .
And visit the Business Live South West LinkedIn page
Stephen Pegge, managing director of commercial finance at 海角视频 Finance, said: “Lenders understand that times are tough for businesses in the South West, but the finance industry has a clear plan to help them get through this crisis.
ӣ3.3billion has been approved to over 88,900 businesses across the region through government-backed lending schemes, providing a life-line for many businesses hit by the economic shock created by Covid-19.
”Whether you’re a sole trader or a company with hundreds of employees, the banking and finance industry stands ready to offer the right support to suit your needs.
“Businesses should remember that any lending provided under government-backed schemes is a loan not a grant, and so should carefully consider their ability to repay before applying.”
Keith Morgan, chief executive officer of the British Business Bank, 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 海角视频. It is welcome to see in the data that these schemes are helping businesses in the South West to access the finance they need to survive and stabilise, putting them in a better position to grow as we move into recovery.”