Scale of financial support to Burnley and Pendle businesses during pandemic revealed
New statistics showing Government support to businesses in Burnley and Pendle have been welcomed by local MPs.
Some 1,440 Bounce Back Loans worth £42m. have been offered under the Bounce Back Loans Scheme in Burnley. Also in Burnley, 72 loans worth £21m. have been offered under the Coronavirus Business Interruption Loan Scheme.
Burnley MP Antony Higginbotham said: “We saw in the 2008 financial crisis how devastating lack of access to credit was for businesses, with so many having to close despite being viable in the long-term. These numbers show that we won't allow that to happen again with the Government stepping forward to ensure banks keep lending.
"It's testament to the ingenuity and entrepreneurship of Burnley businesses that over £60m. in loans has been awarded, recognising the underlying strength of our local economy and whilst times are really tough at the minute, this shows that Government and business are working together to get through the pandemic”.
Businesses across Pendle have benefitted from £70m. worth of loans since the start of the coronavirus outbreak. This includes 1,635 Bounce Back Loans – 100 per cent government-backed loans which are interest-free for the first 12 months – worth £50m.
The scheme ensures that small firms who need vital cash injections to keep operating can get finance in a matter of days, with no repayments due during the first 12 months.
In addition, 69 loans have been offered in Pendle at a value of £20m. through the Coronavirus Business Interruption Scheme. This scheme has helped small and medium-sized businesses to access loans and other kinds of finance up to £5 million.
Mr Stephenson said: “This year has been hugely challenging for businesses in Pendle but these latest figures demonstrate the scale of support that the Conservative Government has put in place to protect livelihoods and businesses.
“Never has the Conservatives’ agenda to level up the whole county been so important – and we will continue to focus on supporting hardworking families across Pendle.”
The Chancellor also announced on Friday that the government’s Job Support Scheme will be expanded to protect jobs and support businesses required to close their doors as a result of coronavirus restrictions, alongside increasing the cash grants to businesses in England required to shut in local lockdowns to support with fixed costs – worth up to £3,000 per month.
So far, the Government has provided over £200 billion throughout its economic response to coronavirus to support jobs and businesses in the UK.