Small business lending falls Figures from banking body UK Finance shows borrowing by small businesses fell significantly last year. Small firms took on £22.6bn in debt 2021, with this 64% down on the year before. Analysis shows that in Q2 2021, small firms took on £5.2bn in debt, compared to £34.5bn in Q2 2020. The report says Government implemented loan-schemes rolled out amid the pandemic incentivised banks to channel funds into the private sector, boosting overall loan demand among businesses during the pandemic.