Alarm bells have been sounding. Warnings of widespread failure among the 1.4m UK small businesses that borrowed cash to see them though the pandemic have been getting louder.
Fears have been expressed that thousands of ‘zombie companies’ are being created – surviving but without resources to invest or grow.
In a move to see off those fears chancellor Rishi Sunak announced in February that businesses were getting more time to repay their government support loans.
His hope is the greater flexibility will give businesses more “breathing space to get back on their feet”.
Around £45bn has been borrowed under the government’s ‘Bounce Back’ loan scheme, which offers loans of up to £50,000.
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