DEBT bombshell: Property industry owes government £2.42 billion

British Business Bank lending via CBILS and Bounce Back loans reveals eye-watering government financial support for industry.

covid loans

The eye watering amounts of money lent by Chancellor Rishi Sunak to the property industry during the pandemic has been revealed within the latest Covid loans data.

It reveals the total cost of the Coronavirus Business Interruption Loan Scheme (CBILS) and Bounce Back loans scheme paid to the ‘real estate sector’.

Both schemes have provided financial support to businesses across the UK that are losing revenue and seeing their cashflow disrupted as a result of the Covid-19 outbreak.

This includes all the services related to managing, buying, selling and renting residential and commercial property including land.

Covid loans

Some £204 million has been given to companies operating in these property industry sectors under CIBLS, and have come via 1,001 loans. But £2.21 billion in Bounce Back loans have also been distributed via 63,000 loans. This gives a total of £2.42 billion that companies, including many estate agencies, will have to pay back as the Covid loans hangover kicks in.

paul scully Small Business Minister Paul Scully (pictured) says: “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.

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

The CBIL and Bounce Back loans have been provided through the government-owned own British Business Bank.

Read more about how CBILS and Bounce Back loans work.

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