Is your business struggling to pay back Covid loans? Here's what to do

A third of small companies fear they may struggle to return state aid. Here's what to do if you're finding it hard.

Man in a suit with his head in the sand
Do not, under any circumstances, bury your head in the sand
(Image credit: © Getty Images)

One in three small businesses are worried that they will not be able to repay emergency Covid-19 loans. A survey by the consultancy EY of hundreds of small and medium-sized enterprises warns that with pandemic support for businesses now largely over, many firms have not recovered sufficiently to begin making repayments.

Default rates on Bounce Back loans and the Coronavirus Business Interruption Loan Scheme (CBILS), under which banks offered billions of pounds in government-guaranteed loans to stricken businesses, have so far been lower than expected.

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David Prosser
Business Columnist

David Prosser is a regular MoneyWeek columnist, writing on small business and entrepreneurship, as well as pensions and other forms of tax-efficient savings and investments. David has been a financial journalist for almost 30 years, specialising initially in personal finance, and then in broader business coverage. He has worked for national newspaper groups including The Financial Times, The Guardian and Observer, Express Newspapers and, most recently, The Independent, where he served for more than three years as business editor.