More than half (55%) of businesses that received bounce loans used the money to grow or diversify their business.
According to a new study from Enterprise Nation and Starling Bank, 36 percent of small and medium-sized businesses (SMEs) that received a bounce loan used it to pay bills, while 35 percent kept funds in. reserve and 27 percent used the money to invest in their business.
Almost half (48%) of small business owners said their bounce loan helped boost their mental well-being.
18% of business owners surveyed said their rebound loan had resulted in “significant growth.”
“Bounce loans have been a lifeline for SMEs,” said Helen Beirton, banking director of Starling Bank.
“Not only has the funds enabled them to pay the bills and maintain critical supply chains, it has enabled them to find the funds to loosen their business model and better ride the pandemic wave. “
The study also found that interest in the government’s new payback loan program is high, with 70 percent of small business owners who took out a bounce loan saying they would consider applying.
“What this research shows is the resilience of small businesses,” said Emma Jones, founder of Enterprise Nation.
“Although many took out a loan for the first time, they put the funds to good use. The money allowed them to confidently pivot, introduce new products and services such as online ordering systems or strengthen their e-commerce offering and improve their online marketing. This must be a relief for the government to hear. “