Businesses bailed out with government help

Coronavirus loans help keep companies going

STEPHEN BARK

Businesses across South Lanarkshire have been loaned more than £140m from government-backed schemes

Figures published by the British Business Bank revealed that more than 4000 businesses had taken advantage of the Coronavirus Business Interruption Loan Scheme (CBILS) and the Bounce Back Loan Scheme (BBLS).

The CBILS is open to small businesses with a turnover of up to £45m. Companies can borrow up to £5m and the government will cover interest and lender-levied fees for the first 12 months.

BBLS is a government-backed scheme with a 100 per cent guarantee offering small and micro businesses loans of up to 25 per cent of their turnover between £2000 and £50,000.

MPs from across the region have welcomed the figures but some feel the government still needs to do more to support businesses.

The British Business Bank were unable to provide figures at a local authority level but were able to provide them for each UK parliament constituency.

In the three constituencies wholly within South Lanarkshire, 168 businesses took out CBILS loans totalling £29.7m while 3860 have taken out BBLS loans totalling £113m.

The largest chunk of these were in Angela Crawley’s Lanark and Hamilton East constituency.

In total, there have been 82 CBILS loans totalling £14m in Lanark and Hamilton East as well as 1478 BBLS loans worth £45m.

Ms Crawley said: “It is encouraging that so many businesses in Lanark and Hamilton East have been supported by Coronavirus Business Interruption Loans and Bounce Back Loans through the UK Government schemes, however I am concerned that many businesses have not been able to access support due to flaws in the schemes.

“I have been contacted by many business owners who have not been able to access the loan schemes due to not having an existing business account with qualifying banks.

“The SNP has called on the Chancellor to use the scheme to provide businesses with overdrafts during this crisis to allow immediate access to cash, and to offer direct grants or equity investments rather than loans for firms unable to access finance.”

In Lisa Cameron’s East Kilbride, Strathaven and Lesmahagow constituency, there have been 54 CBILS loans taken out worth £8.89m as well as 1201 BBLS loans totalling £35.5m.

Dr Cameron (pictured) said: “My office have dealt with over 1600 enquiries during the past four months including those from local businesses that we have assisted to access Covid19 Government supports. I am delighted to have it confirmed that across CBILS and BBLS our constituency has received 1255 loans worth £44,413,528 – my office will continue to do all possible to support business sustainability.”

There have been 32 CBILS loans worth £6.78m and 1181 BBLS loans worth £32.49m taken out in Rutherglen and Hamilton West.

MP for the area Margaret Ferrier said: “There is no doubt that the coronavirus pandemic has hit businesses hard and the loan facilities offered by the UK Government haven’t quite lived up to their promise to support these businesses in their hour of need.

“For Bounce Back Loans in particular, because the funding isn’t directly provided by government, there is a huge reliance on lenders being able to source their own funding for the scheme. Many fintech companies and challenger banks, like Tide, have decided to stop providing Bounce Back loans for this reason, which risks more businesses going under.

“Converting these loans to grants would give more businesses the best possible chance of weathering the economic storm caused by coronavirus.

“The Treasury must take these steps immediately and give Scotland the full funding it was promised via Barnett to support a sustainable economic recovery.”

David Mundell’s Dumfriesshire, Clydesdale and Tweeddale constituency - which covers part of South Lanarkshire as well as Dumfries and Galloway and the Scottish Borders - has seen 46 CBILS loans worth £8.6m and 1210 BBLS loans worth £35.38m taken out.

Mr Mundell said: “I welcome the recent news from the British Business Bank showing the extensive support that has been offered to businesses across Clydesdale throughout the coronavirus pandemic.

“This support is in addition to the large uptake in the area to the UK Government’s Coronavirus Job Retention Scheme and SelfEmployed Income Support Scheme.

“All in all, these measures have helped keep hard-working businesses afloat and keep people in their jobs, providing reassurance and assistance to many at this troubling time.”