Regional data released on Friday 7 August shows that over 66,000 Scottish businesses have benefitted from over £2.4bn of funding under the UK Government's two major Coronavirus loan schemes.
The data, from the British Business Bank, showed that over 63,000 loans worth over £1.8bn have been offered across Scotland under the streamlined Bounce Back Loan Scheme (BBL). This scheme is designed to help SME businesses suffering from pandemic-induced cash flow issues by offering them small (maximum £50k) government-backed term loans. It is generally accepted that the process for obtaining these loans is faster due to the government providing lenders with a 100% guarantee and a standardised application process.
Over 2,600 loans worth almost £590m have been offered under the Coronavirus Business Interruption Loan Scheme (CBILS). This scheme offers business loans, overdrafts, invoice finance and asset finance of up to £5m to businesses with a turnover of less than £45m.
The total funding provided to Scottish business represents 6% of the national total, reflecting the relative size of Scotland’s business population (6%).
Further information on the Coronavirus Business Interruption Loan Scheme and the Bounce Back loan Scheme can be found here.
A quick guide to the differences between the loan schemes:
This article was co-written by Calum Lavery.