Increasing guarantees to 100% on emergency loans would be welcome, say small firms, but only “one piece of the puzzle”

Increasing guarantees to 100% on emergency loans would be welcome, say small firms, but only “one piece of the puzzle”

Responding to reports that the Treasury is set to increase its guarantees on Coronavirus Business Interruption Loans (CBILS) with values up to £25,000 from 80% to 100%, Federation of Small Businesses (FSB) National Chairman Mike Cherry said:

"The average value of a CBILS loan currently stands at more than £170,000. The vast majority of small firms - more than 95 per cent of which are micro businesses or sole traders - are not seeking loans of anywhere near that size.

"It's good to hear that the Treasury is set to embrace our recommendation to provide 100% guarantees on loans with values up to £25,000. Doing so will help to get far more cash to far more of the firms that need it - businesses that have had to pay March's payroll and ongoing overheads with no revenue coming in.

"This is only one piece of the puzzle, however. A lot of banks need to make back office adjustments to ensure that they can issue commercial loans of this size, as they are subject to the terms of the Consumer Credit Act. They must do so swiftly if this change to the CBILS terms is to have a meaningful impact."

 

Author of this COVID-19 Business Support Hub Article

Nicola Moss, Operational Support Coordinator – East Midlands (FSB)

Nicola Moss

Nicola Moss

Operational Support Coordinator – East Midlands Federation of Small Businesses.

Nicola is a professional in events, social media marketing and communications supporting small businesses. Her expertise positions her well to help small business owners find support and opportunities through marketing and communications.

The FSB mission is to help smaller businesses achieve their ambitions. Established 45 years ago, FSB is the UK’s largest grassroots business campaigning group, which ensures the voice of small businesses is heard at the highest level across the UK, as well as providing business services and products to our members.

As experts in business, FSB offers members a wide range of vital business services, including advice, financial expertise, support and a powerful voice in Government. 

 

How to get in touch with Nicola Moss

www.fsb.org.uk

 

 

 

 

COVID-19 Business Support Hub

These are challenging times for business and although our ethos is to only shout about good news, we've created COVID-19 Business Support Hub on the Love Business the website to support you with expert tips, advice and ideas from your fellow businesses to help you get through this COVID-19 crisis. 
 

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