Exorbitant interest is just too much

I raised the matter of sky high interest rates with the Business Secretary Alok Sharma.

This came to my attention after a Midlothian company was offered a loan through a newly accredited CBILS (Coronavirus Business Interruption Loan) lender, Fleximise, at 14.99% interest.

I also wrote to Mr Sharma calling for the UK Government to cap the interest on CBILS loans in line with the Bounceback scheme at 2.5%.

Emergency loans backed by the government should not be charging sky-high interest rates, leaving cash-strapped companies struggling in debt.

We know thousands of small companies have been turned down by the big banks for the government-backed loan scheme.

The scheme is fundamentally flawed with the banks acting as gatekeepers of who can get help.

Now it looks like the bluechip companies will have received preferential rates while other companies are being left to the wolves.

An interest rate of 14.99% is not acceptable. This is not lifeline support, it is more like scavengers picking the bones of previously thriving companies. At this rate we'll soon have payday lenders like Wonga accredited to offer loans in this government backed scheme.