Hospitality businesses were presented with new recovery funding this week, as Business Enterprise Fund (BEF) launched its £5m Hospitality Recovery Loan.
An event at Spark:York, hosted by BEF, welcomed several hospitality company owners and introduced them to the funding, which has been designed to deliver additional support to hospitality, food, retail and supply chain businesses across Yorkshire, The Humber and Tees Valley.
According to trade body UK Hospitality, the British hospitality sector lost £114.8bn in sales in 2020/21 due to Covid-19. Businesses that have not faced closure have been left with loss of income, depleted cash reserves and staff shortages. With the recent lifting of restrictions, the sector now faces the challenge of returning to pre-pandemic trading levels.
Guest speaker, Kevin Hollinrake MP, Co-Chair of the APPG for Fair Business Banking, spoke passionately about the importance of SMEs and hospitality to the regional and UK economy, highlighting the current funding gaps they face. “SMEs account for three fifths of the employment and around half of the turnover in the UK private sector, yet they are hugely impacted by a £22bn funding deficit which impedes their growth, vital after the damage Covid-19 has caused,” he said. “Community development financial institutions like BEF play an important role in addressing this funding gap - and I’m delighted to announce this new funding to support SMEs in the hospitality sector in this region.”
“The Hospitality Recovery Loan will have a huge impact on the sector, I would encourage any business looking to push forward to get in touch with BEF,” added Ben Fry, Chief Enchantment Officer at The Potions Cauldron in York. “They look at your business, they show interest in your ideas and could give you the cash flow injection that could make all the difference.”
Steve Waud, CEO of BEF said: “Recovery and growth is vital for this sector, which has suffered more than most over the last two years. We look forward to funding many other hospitality companies in the Yorkshire, Humber and Tees Valley region.”
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