Firms could go bust in days as only £8.7billion in emergency loans has been paid out
- The Chancellor Rishi Sunak announced two bailout schemes to boost lending
- But just 2.6 per cent of the money available has actually been loaned by banks
- Firms face bust as only £8.7bn of the £330bn promised has gone out the door
Firms face going bust within days as only £8.7billion of the £330billion promised in emergency loans has gone out the door.
Four weeks ago Chancellor Rishi Sunak announced two bailout schemes to boost lending to large and small businesses.
But figures yesterday showed just 2.6 per cent of the money available has actually been loaned by banks.
Less than one in four applicants for the scheme for small and medium sized firms have received help – just 6,020 out of 28,460.
Four weeks ago Chancellor Rishi Sunak announced two bailout schemes to boost lending to large and small businesses
The remaining businesses have either been rejected or are still waiting to hear if they have been approved.
Critics last night warned that many companies will be out of business by the end of the month unless banks urgently increase the pace of lending.
Smaller firms have complained they are struggling to get the help they need as most banks are still not offering loans under £25,000.
The Financial Conduct Authority yesterday wrote to banks demanding they boost lending.
RBS has handed out around 70 per cent of all loans by volume and value. This is in part because other banks are not yet offering loans under £25,000 to small businesses.
The pace of loan approvals has increased in recent days, rising from 240 on April 2 to 910 on April 8, with 1,800 more worth over £300million recorded over the bank holiday.
Business groups, such as the British Chamber of Commerce have called for the loan schemes to be accelerated to ensure small and medium-sized businesses can stay afloat.
Meanwhile, the Treasury yesterday extended the cut-off date for the Coronavirus Job Retention Scheme so employers can claim for furloughed employees who were on their payroll on or before March 19.