Firms struggling to access emergency coronavirus loans

08 Apr 2020

UK businesses are struggling to access emergency loans provided by the government's coronavirus (COVID-19) business interruption loan schemes, according to a survey conducted by the British Chambers of Commerce (BCC).

The BCC's weekly tracker poll, which shows the pandemic's impact on businesses, surveyed over 1,000 firms. Just 1% of companies surveyed by the BCC had managed to access Chancellor Rishi Sunak's Coronavirus Business Interruption Loan Scheme, while 8% had applied unsuccessfully.

Businesses that failed to access funds through the scheme cited the complexity of the application process, insufficient guidance and slow responses. Businesses applying for small business grants also reported problems, with eight out of every ten firms not meeting the criteria, and others reporting insufficient information available.

The BCC survey also found that 6% of businesses had already run out of cash, while 16% had less than a month's worth of cash in reserve and 41% had only one to three months' cash in reserve.

Commenting on the results, Adam Marshall, Director General of the BCC, said: 'Many businesses face a cliff-edge scenario, either at the end of this month or over the course of the next quarter.

'We've seen a big jump in the number of firms furloughing staff, and many are now starting to apply for access to government loan and grant schemes to keep themselves afloat. Our research suggests that support is only starting to reach firms on the ground.'

Contact us

Please get in touch with us today by phone, email or enquiry form to arrange your free initial consultation and see how we can help you and your business.

Get in touch »

Client Portal

We can provide you with an online reporting portal that gives you real-time information about your business wherever you are and whenever you need it.

Log in »

Our Newsletter

Why not register to receive our Monthly Newswire? Once a month we'll send you an email packed full of essential business news and handy tax tips to help save you money.

Register »


IFA
ABTA
Quickbooks Intuit
Copyright

© 2020 Swenta. All rights reserved.

We use cookies on this website, you can find more information about cookies here.

Swenta is a limited liability company registered in England and Wales under no. 08343019.
Registered Address as shown.

Contact Us

Please call:
07584092952
02074341143

Addresses
Swenta, Suite 434, The Linen Hall, 162-168 Regent Street, London W1B 5TB
Swenta UAE, Suite 2207, Burlington Tower, Business Bay, Dubai, United Arab Emirates
Swenta Pakistan, Office No.1114, 11th Floor, ISE Tower, Jinnah Avenue, Blue Area, Islamabad, Pakistan