Over 1.5 million SMEs have received approximately £66 billion worth of Government-back Covid-19 loans, as of January 2021. This includes the Bounce Back Loan Scheme, Coronavirus Business Interruption Loan Scheme, and the Future Fund.
SMEs are likely to suffer adversely from putting aside cash to enable repayment of Covid-19 loans. Unless SMEs address this problem, there will be a drag on investment in R&D, investment in growth, replenishing working capital with which to trade, investing in productivity enhancement and in exporting.
Our report considers what type of advice and support would help SMEs to repay their debts, and return to growth.