Beyond rescue

Firms use government Covid loans to fund growth

Emma Jones, Enteprise Nation

Emma Jones: funds have been put to good use (pic: Terry Murden)

More than half of British businesses (55%) which took out a Covid rescue loan to adapt and grow, according to a new report.

It suggests that the Bounce Back Loan Scheme (BBLS) has played a role beyond surviving the pandemic.

While a third (36%) of small and medium-sized enterprises (SMEs) have used their BBLS loan to pay the bills, 35% have kept funds in reserve and one in four (27%) have used the cash to invest in their business.

This investment includes introducing new products and services (27%), bringing in new technology (13%), upskilling staff and retraining staff (13%) or increasing marketing efforts (24%).

Enterprise Nation, which produced the report with Starling Bank, surveyed 850 of its members. Respondents were asked a range of questions about their borrowing, including BBLS, in the last year.

Among the respondents, nearly half (48%) said that having the funds in reserve gave them peace of mind during a difficult time and/or gave them greater confidence to innovate, adapt or diversify their business (36%). 

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