Strengthened support for business welcomed

Chief executive Corin Crane said: “These new announcements relating to the scheme will be a very welcome addition – particularly for those businesses who have felt that the proposed measures were not for them.

“It is vital that businesses of all sizes get quick access to the help on offer and the Black Country Chamber of Commerce will continue to ensure that government responds to the demands of our members and this important business community.”

Over the last fortnight the UK has witnessed unprecedented Government interventions, which have gone some way to helping Black Country businesses deal with the challenges of operating during and beyond the Covid-19 crisis and the c has continued to maintain the pressure in order to ensure that businesses are able to access this support immediately.

So far £90 million of business interruption loans – through the Coronavirus Interruption Loan Scheme – have been approved for nearly 1,000 firms. In addition, a Government-backed scheme to provide financing to larger companies, being operated by the Bank of England, has also provided almost £1.9 billion of support to firms and a further £1.6bn has been committed.

The Chancellor Rishi Sunak's latest measures to boost financial support for businesses affected by coronavirus include the extension of CBILS so that all viable small businesses affected by COVID-19, not just those unable to secure regular financing, will now be eligible should they need financial help during this time, the Government stopping lenders from requesting personal guarantees for loans under £250,000 and making operational changes to speed up lending approvals and the Government confirming it will continue to cover the first 12 months of interest and fees.

The scheme will ensure that more firms are able to benefit from Government-backed support during this difficult time. It will provide a government guarantee of 80 per cent to enable banks to make loans of up to £25m to firms with an annual turnover of between £45m and £500m. This will give banks the confidence to lend to more businesses which are impacted by coronavirus but which they would not lend to without CBILS. Loans backed by a guarantee under CBILS will be offered at commercial rates of interest and further details of the scheme will be announced later this month.

Adam Marshall, Director General of the British Chambers of Commerce said “We’re pleased that the Chancellor is listening and responding to the real-world concerns of firms across the UK who are urgently trying to access financial support.

“Improvements to the Coronavirus Business Interruption Loan scheme will help firms get access to cash more quickly, and the announcement of a new loan scheme for mid-sized companies closes a significant gap in existing support.

“Chambers of Commerce will continue to work with government and the banks to ensure that support reaches businesses at the front line.”

Dame Carolyn Fairbairn, Director General of the Confederation of British Industry, said: “The Chancellor’s measures are a big step forward. They will help deliver cash faster to firms battling for survival in the headwinds of the pandemic.

“By providing more support for mid-tier companies, they are backing our most significant and iconic regional employers. These firms number in the thousands and make a huge contribution to the economy, so it’s good to see them getting the support they deserve. More detail and a clear time frame are still needed, but this plan is hugely welcome."

Head of commercial banking at HSBC UK, Amanda Murphy, said it welcomed the Chancellor’s announcement.

"We have been working closely with the Government and the British Business Bank to ensure that the 'squeezed middle' also benefit from government-backed schemes. Full details of the CLBILS will be available on our website once finalised.

“HSBC UK is committed to supporting UK businesses through these challenging times, and will continue to launch new measures to alleviate some of the pressures that our customers are facing including preferential rates for those within the ventilator business to help combat the threat of Covid-19. We believe the initiatives announced today, combined with our own support will provide reassurance to businesses over the coming weeks and months.

“We apologise that it has taken our customers longer than usual to contact us and want to reassure them that we are doing all that we can in these difficult times to get our service levels back to where they were before COVID-19 hit the UK.”