Construction takes more bounce back loans than any other sector
The construction industry took more loans under the government’s coronavirus Bounce Back Loans Scheme (BBLS) than any other sector, figures have shown.
Data from the British Business bank revealed that a total of 210,482 BBLS loans were offered to construction as a sector, with a value of £6.1m.
Under the BBLS scheme, which is aimed at struggling small businesses, companies can apply for a 100% state-backed loan worth up to £50,000 with no interest charged or repayments needed within the first 12 months, up to the deadline of 30 November this year.
The number of BBLS loans offered to construction was higher than the 196,740 offered to wholesale and retail trade; repair of motor vehicles and motorcycles, although the value of loans offered to that sector was greater, at £6.9m.
Construction was also offered one of the highest number of loans under the Coronavirus Business Interruption Loans Scheme (CBILS), which offers financial support to smaller businesses in the form of loans of up to £50,000 through a network of approved lenders.
There were 7,815 CBILS loans worth £1.8m offered to construction as of 4 October this year.
Patrick Magee, chief commercial officer, British Business Bank, said: “The British Business Bank is committed to identifying and helping reduce regional imbalances in access to finance for smaller businesses across the UK. It’s therefore encouraging that the data shows a continued benefit to well over a million smaller businesses spread across the whole country, helping them with much-needed emergency finance so they are better placed to survive, stabilise and prepare for future growth.”