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<p>The Department monitors regional trends in business lending through the British
Business Bank (BBB), the SME Finance Monitor survey, and the trade associations UK
Finance and Responsible Finance. The BBB’s three regional funds support access to
debt and equity finance in Cornwall, the Northern Powerhouse and Midlands Engine,
including Coventry.</p><p> </p><p>The regional spread of business debt broadly reflects
national demand for business lending and the regional distribution of the business
population. Differences within regions are more significant, with Community Development
Finance Institutions playing a valuable role in enabling access to debt finance for
businesses in under-served areas.</p><p> </p><p>According to the SME Finance Monitor,
the proportion of all SMEs using external finance was 38% in Q2 2022, down from the
45% using finance in Q2 2021 and in line with pre-pandemic levels. Use of debt finance
is higher for SMEs trading internationally and those with plans to grow. The majority
(86%) of SMEs are in the category of ‘happy non-seekers’ of finance, meaning that
they have either no debt or a level of borrowing that they consider sufficient for
their needs.</p>
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