Businesses across the South West have benefitted from over £3.3bn in Covid-19 financial support

New data shows that businesses across the South West have received a total of over £3.3bn in funding under the government’s two largest Covid-19 loan schemes, the Coronavirus Business Interruption Loan Scheme and the Bounce Back Loan Scheme. These provide financial support to businesses across the UK that are losing revenue, and seeing their cashflow disrupted, as a result of the Covid-19 outbreak: 

• over 84,000 loans worth almost £2.4bn have been offered across the South West under the Bounce Bank Loan Scheme, which provides a six-year term loan from £2,000 up to 25% of a business’ turnover, with a limit of £50,000. 
• over 4,200 loans worth over £920m have been offered across the South West under the Coronavirus Business Interruption Loan Scheme, which provides Business loans, overdrafts, invoice finance & asset finance of up to £5m to businesses with a turnover less than £45m. 

Total funding provided to South West businesses represents 8% of the national total, in line with the relative size of the South West’s business population (10%). 

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 UK. 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.” 

Businesses across the country, from a wide range of sectors, have benefited from the schemes. Those featuring on the British Business Bank website include a Cambridgeshire-based cooking technology manufacturer, a Gateshead-based health solutions company and a Cornish removals company. 

Case study: Going Places Removals, Cornwall 

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. Daniel Carter, owner of Going Places Removals, said: "Because the application process took barely any time and the payment of the loan was almost instant, we could pay our creditors for as long as the business was unable to trade. Although we’re still not fully operational, the assistance with cashflow has been very beneficial. If we hadn’t received the Bounce Back Loan, we would’ve had to seriously consider closing the business and making all our staff redundant. The loan has allowed us to weather the lockdown, and as per the new government directive we’re now able to do removals again to support people in moving house." 

Small Business Minister Paul Scully said: “Throughout this crisis, we have backed business of all sizes in the South West, and in every corner of the UK. The schemes put in place by the government-owned British Business Bank have provided some much-needed breathing space for businesses as they deal with the challenges posed by coronavirus. 

“Government support has helped firms right across the South West, not just in keeping businesses going but now enabling thousands to bounce back in a safe, Covid-secure manner.”