11 March 2020
Commenting on the Budget, Stephen Haddrill, Director General of the Finance & Leasing Association, said:
“The measures announced to help the NHS, consumers and businesses to deal with the likely disruption of Coronavirus are very welcome.
“However, banks are not the only business finance providers, so the temporary Coronavirus Business Interruption Loan Scheme, in which banks will offer loans of up to £1.2m to support SMEs, would reach far more firms if non-bank lenders were also included in the plan.
“Supporting customers over the next few months will be absolutely vital – especially for those whose income is severely affected by the Coronavirus disruption. FLA members are there to help, so it’s important to keep talking to your lender.”
We’ve received clarification that the temporary Coronavirus Business Interruption Loan Scheme will include non-bank lenders. This is good news. But the fact that the Bank of England’s Term Funding support will only be available to banks is a missed opportunity to get funding to as many SMEs as possible.