Just before Christmas The British Business Bank released statistics revealing the level of funding granted by way of the Coronavirus Business Interruption Loan Scheme, Bounce Back Loan scheme, Larger Business Interruption Scheme and the Future Fund
The totals are stunning; £68Billion provided across the 4 schemes to over 1.5Million businesses.
The Bounce Back scheme has provided £43.5Billion from 1.381Million loans, suggesting an average loan size of just over £30k.
CBILS totals are £19.6Billion across 82618 loans, giving an average of £237k, and the numbers for Larger Business Interruption Scheme are £4.97Billion lent across 675 loans (average, £7.3M)
At the moment the schemes are scheduled to end on 31/1/21.
As we approach the anniversary of the schemes beginning, repayments will start to fall due and, over time, delinquency rates will be interesting to monitor and I guess will be a long way away from historic delinquency rates that may be expected in non-pandemic times.
Anticipate a big year for the Insolvency Profession and HMRC’s attitude will be crucial.