Loans to Blackpool Transport and Winter Gardens get extended repayment terms aiding Covid recovery.
Blackpool Entertainment got more time on their loan. Blackpool Transport also gained extra time. This helps them repay the money. Blackpool Transport owes £3.7 million.
Blackpool Entertainment owes £2.5 million. Blackpool Transport now has five more years to repay. Blackpool Entertainment gained ten extra years.
The Shareholder Committee reviewed the loan requests. They then sent them for final approval. The Business Loans Fund Panel will decide.
The council could refinance the loans. If not, the companies must find other lenders. Other lenders would likely charge higher interest.
These council loans had risks. The risks balanced against company failures. These companies are important to the town. They needed finance during Covid.
The Covid fund started in 2020. It had £20 million, plus a £4 million cushion. The fund distributed just over £10 million in loans.
The Sandcastle Waterpark got £1.1 million. Blackpool Airport received £2.76 million. These loans protected council assets.
Lockdowns caused significant income loss. To get loans, companies made Covid recovery plans. The loans had fixed interest rates.
The original loan term was up to five years. This let companies execute their recovery plans. Some companies need more time to repay.
Companies faced big pandemic losses. They could lose up to £20 million. Lockdowns and restrictions hurt business badly. The town acted to help them.