British business bank

Construction sector takes largest number of Bounce Back Loans

The construction sector has received the largest number of loans given under the Bounce Back Loans Scheme (BBLS), according to data released today (7th August) from the British Business Bank.

The BBLS is a demand-led scheme offering lending that targets small and micro businesses, providing loans from £2,000 up to 25% of the business’ turnover, with a maximum loan of £50,000.

The number of BBLS facilities provided to the construction market stands at 173,452.

This equates to 17% of loans given under the scheme.

Even though the construction sector was granted a higher number of facilities, the volume of money given (£5.09bn) was less than the wholesale and retail trade market (£5.9bn).

Construction was also the sector with the second highest number of Coronavirus Business Interruption Loan Scheme (CBILS) facilities (14% of all loans) behind the wholesale and retail trade market (which took up 19%).

The number of CBILS loans provided to the construction sector stands at 6,295, a total of £1.27bn.

Both schemes 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.

Paul Scully, small business minister, commented: “Throughout this crisis, we have backed business of all sizes 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.”

Stephen Pegge, managing director of commercial finance at UK Finance, added: “Lenders understand that times are tough for businesses up and down the country, but the industry has a clear plan to help them get through this crisis. 

“Whether you’re a sole trader in a rural area or a company with hundreds of employees in a major city, the banking and finance industry stands ready to offer the right support to suit your needs and these figures demonstrate that funding is well distributed throughout the UK.”

Leave a comment