Moray MP Douglas Ross has welcomed further support for small businesses made by the Chancellor of the Exchequer, Rishi Sunak, today (Monday). Speaking in the House of Commons he announced a fast-track loan scheme of up to £50,000, which will be interest free for the first 12 months and secured 100% by the UK Government.
The UK-wide scheme will ensure that small firms in Moray who need vital cash injections to keep operating can get finance, and comes alongside a series of measures that have been delivered by the UK Government to support businesses and the economy.
Douglas said: “Businesses in Moray have contacted me about the difficulty accessing financial support largely because of the processes needed by banks to lend money to businesses. I’m hopeful this new announcement will cut through the red tape and shows the UK Government is listening to issues that are highlighted with them and reacting accordingly.
“The Coronavirus Business Interruption Loan Scheme (CBILS) has proven difficult for some to access so it’s good news that the Government has looked at this again and will offer to back borrowing by 100%, removing the financial hurdles that have previously created obstacles.
“Businesses will be able to borrow up to a maximum of £50,000 (or 25% of turnover) and the monies could be delivered within 24 hours of an application being submitted. Loans will be interest free for the first 12 months, and businesses can apply online through a short and simple form. The scheme will be open for applications from next Monday (May 4th) and the loans will be accessed through a network of accredited lenders, who are currently delivering the business interruption loan scheme.
“I’m very pleased the Chancellor has adapted how this scheme will operate and stated that Government will be working with banks to ensure loans can be advanced as quickly as possible. This could release much needed, vital support for a number of businesses in Moray at this time. This was raised with me by a number of local businesses and stakeholders so it’s good we have been able to deliver some movement on the scheme.
“The critical factor is that the UK Government recognises the need to support businesses to pave the way to a fully functioning and vibrant economy once we emerge from the current restrictions and return to a form normality.”