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June 19, 2024
PI Global Investments

Third phase of British Business Bank’s recovery loan scheme hits £1b

The British Business Bank’s third recovery loan scheme has now supported £1b of finance offers to small businesses since its launch in August 2022.

With more than 60 participating lenders, the scheme offers a wide range of finance types, including term loans, asset finance, invoice finance, revolving credit facilities, and a newly launched asset-based lending variant.

More than half of the offered facilities were for growth capital for UK smaller businesses, while many were for working capital. Of the businesses supported, more than 90 per cent had fewer than 50 employees.

Louis Taylor, chief executive of British Business Bank, said: “This milestone is a fantastic achievement for the bank and for all of the lenders participating in the recovery loan scheme.

Visit Hampshire Biz News for bright, upbeat and positive business news from the county

“It’s good to see the diversity of lenders that have joined the scheme and the types of finance they’ve been able to offer – especially asset finance, which is so important to growing and innovating businesses.

“Direct loan guarantee schemes such as this are vital to ensuring the market serves the needs of smaller businesses across the UK.”

The scheme is backed by the UK government and can support facility sizes of up to £2m for most borrowers.

Past beneficiaries have used finance for managing cashflow, investing in new equipment or vehicles, transitioning toward net zero, and developing new products.

Martin McTague, national chair of the Federation of Small Businesses, added: “Keeping finance flowing for small firms is vital to economic growth, and we’re pleased that the third phase of the recovery loan scheme has reached the £1b mark.

“This shows its importance for the UK business ecosystem as a whole and underlines why its future financing must be confirmed by the government as soon as possible.

Helping startups get off the ground, and grow into scaleups, is key in both the here-and-now and for the UK’s future prospects, especially in our current high interest rate environment.

“Having the scheme set up and ready to go will be invaluable in case of an economic slowdown, to ensure funding gets to firms as swiftly as possible.”

Read more – British Business Bank reveals West Midlands Small Business Ambassador

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