Over half of the small and medium-sized enterprises (SMEs) that have opted into the Bounce Back Loan Scheme (BBLS) set up by the government are using these loans to adapt and expand, new research shows.
This research was carried out by Starling Bank and Enterprise Nation. The results reveal that 55% of the SMEs that have received one of these loans are using them to grow their companies, rather than simply to survive the pandemic. Around one third of SMEs – 36% – stated that the loans were being used solely to enable them to make it through the pandemic and lockdown.
One the other hand, 27% of them indicated that they had been able to put some of this BBLS cash into developing their businesses. Among the ways that they have chosen to invest it are marketing (24%), fresh services or products (27%), employee training (13%) and new technologies (13%).
A further 35% of those SMEs that participated in the research stated that some of the loan money had been held back for future use. An accountant for small business from Doncaster or any other area can help advise firms on the best ways to use extra money.
Speaking to London Loves Business, Enterprise Nation founder Emma Jones said:
“What this research shows is the resilience of small firms. Despite many having taken on a loan for the first time, they have put these funds to good use.”
Jones added that the research results would surely delight the government.