British Business Bank release Small Business Finance Markets report
Published today, the British Business Bank’s Small Business Finance Markets 2020/21 report highlights a surge in applications for external financial support, including government and local grants, among SMEs – with almost half (45%) of all SMEs surveyed saying they applied for external financial support in 2020, compared to 13% in 2019. At the same time, gross bank lending (excluding overdrafts) to smaller businesses rose to £104bn in 2020, 82% higher than in 2019, driven by use of the government loan schemes. The report suggests there could be significant further demand for funding throughout 2021 as businesses seek to move on from the pandemic and pivot towards growth, adapt to life outside the EU, improve productivity and transition to a new net zero economy. Further findings, alongside the full report, can be found online here.