Originally written by Timothy Adler on Small Business
Businesses have an average of just over £9,000 left from any Bounce Back Loan they took out to save their struggling firms.
Over a million small businesses have taken out the state-backed emergency loans and the majority expect what’s left of the cash to run out by the end of September.
And nearly two thirds of SMEs (63 per cent) surveyed that have taken out Bounce Back Loans were unaware that the deadline for applying for the larger Coronavirus Business Interruption Loan Scheme (CBILS) is also the end of this month.
>See also: Where to find your £1,000 small business lockdown grant
Of the 1.2m small businesses that have taken out Bounce Back Loans, 39 per cent used the cash to pay suppliers and 29 per cent used the £50,000 maximum loan available to set up e-commerce stores and online shopping channels.
According to a MarketFinance survey, most SMEs (76 per cent) would be keen on having a CBILS facility “on ice” in case they need it later in the year in anticipation of larger bills, taxes due towards the end of the year.
>See also: Boris must ‘act now’ to save businesses from going under
Over three quarters of small