Almost £5.9 billion of funding was paid out to more than 132,000 businesses in the West Midlands under two of the biggest coronavirus loan schemes, a new report has found.
New data published by the British Business Bank showed that the region’s firms received nearly £5.9 billion under the Coronavirus Business Interruption Loan Scheme (CBILS) and the Bounce Back Loan Scheme (BBLS) – which provide financial support to businesses impacted by the pandemic.
The figures show that more than 124,000 loans worth nearly £3.8 billion were provided to West Midlands firms under the Bounce Back Loan Scheme – which provided a six-year term loan from £2,000 up to 25 per cent of a business’ turnover, with a limit of £50,000.
While more than 8,400 loans worth over £2 billion have been provided across the region under the Coronavirus Business Interruption Loan Scheme, which provided business loans, overdrafts, invoice finance and asset finance of up to £5 million to businesses with a turnover less than £45 million.
It means more than 132,000 businesses in the West Midlands received funding through the schemes – representing eight per cent of the national total.
Dr Sophie Dale-Black, UK network director for the Midlands at the British Business Bank, said: “The Covid-19 loan schemes have been an important part of the government’s response to the pandemic, providing businesses with much-needed breathing space and reducing cash- flow concerns for many.
“We’re pleased to see evidence that they have helped smaller businesses right across the West Midlands and look forward to helping more businesses to prosper and grow as we look towards economic recovery.”
Bromsgrove-based Architectural Wallsz, a commercial partitioning company, sought a CBILS loan after losing work following the closure of non-essential construction sites during the outbreak.
Managing director Ian Strangward said: “Accessing a CBILS loan was essential in supporting the survival of our company during this incredibly difficult time.
“Prior to this, we had experienced a bumper quarter and had built a strong order book, but the Covid-19 outbreak meant we needed a funding boost to secure our cash flow position until we could start trading again.”