Just 5,000 businesses get coronavirus loans despite 300,000 enquiries
Just 5,000 businesses have got been handed emergency coronavirus loans despite 300,000 enquiries.
The Government's Coronavirus Business Interruption Loan Scheme promised to help save British business, but fewer than one in 60 who applied for more information have received cash handouts.
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Announced by the Chancellor Rishi Sunak last month, the scheme encourages banks to lend to struggling small businesses with the government covering 80 per cent of the amount.
He promised loans of up to £5m and vowed to do "whatever it takes" to save British business.
Four weeks on from the announcement, just 1.4 per cent of all requests have been dealt with.
Today, Business Secretary Alok Sharma admitted the banks were not moving quick enough.
He said: “I have spent the last couple of days talking directly to some of the largest lenders who are part of this scheme.
“I am very clear to say to them, we need to get money out of the door as soon as possible and they understand that and banks know on this occasion why they have to be part of the solution and they want to be part of the solution.”
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The Government was bashed by shadow chancellor and Labour MP Anneliese Dodds.
She said: “This is critical for preventing a deeper, longer economic impact from this crisis.”
A British Chamber of Commerce poll has found just 1 per cent of UK firms have successfully accessed the grant.
NatWest, which includes Royal Bank of Scotland, say it had approved 2,500 loans as of Friday morning and is responsible for about half of all loans made under the scheme.
Firms all over Britain earlier revealed their fury after being either refused emergency loans, or left unable to even speak to banks on the phone.
One million firms are set to shut because banks are refusing to give them the loans they need to survive.
With most branches closed, thousands of firms are now struggling to get the cash they were promised just a month before.
Those that are open are then limiting the number of customers that can be in a branch at any one time, making it even harder for people to get the help promised.
Companies struggling to stay afloat have complained they couldn’t get even get through on the phone, and those that did were told the money will take weeks they can’t afford.
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