Absolutely. That business can then transfer it to someone else for goods and services, aka use like any other money. It's out there in the wider economy behaving like normal money.

So for governments to take on debt without completely fucking over their economies, the money can't be just poofed into existence. It must come from already existing money. The US, for example, borrows money from people by selling treasury bonds. Basically, promises to return the money plus interest over x years.