Support 1.7 million businesses while generating a whopping 14.6% return on taxpayer dollars.
Image source: Catherine Lewis La Torre / British Business Bank.
After serving for a year as a distributor of government support programs for UK businesses, the British Business Bank today revealed the impact of this transformation.
According to the British Business Bank’s 2021 annual report, the Bank now manages more than Â£ 89 billion in financial support to some 1.7 million UK businesses.
This is a phenomenal increase from the Â£ 8 billion it managed in March 2020. It is almost entirely tied to programs like the Coronavirus Business Interruption Loan Program (CBILS) and the Bounce Back Loan Program (BBLS), which the Bank administered.
âThroughout 2020/21, in response to the pandemic, the British Business Bank has played a vital role for the UK government, financial markets and the economy as a whole,â said Catherine Lewis La Torre, CEO of the bank.
Surprisingly, the Bank also achieved an adjusted loan yield of 14.6%, exceeding the 0.1% it typically targets.
âWe look forward to using our unique market position to further support businesses as they recover and return to growth, thereby rebuilding the foundations for the UK’s future prosperity,â added La Torre.
The Bank’s core programs, which account for Â£ 8.5bn of its loans, were largely (94.5%) distributed by smaller or alternative lenders and nearly Â£ 1bn (943 million pounds) have been deployed outside London, above the Bank’s target of Â£ 868m.
Going forward, La Torre says the Bank’s mission is being revised to include the government’s commitment to net zero, with the new mission to drive “sustainable growth and prosperity across the UK. , and enable the transition to a net zero economy, by improving access to finance for small businesses.
Lord Smith of Kelvin, Chairman of the British Business Bank, explained that the organization’s goal is now to support businesses during the pandemic recovery and beyond: âWe are emerging from the pandemic more resilient and capable than ever, ready and willing to help more UK businesses. to prosper and grow sustainably.
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