COVID-19 SUPPORT: Daily Update – Wednesday 15 April 2020
Key Contact: Christian Farrow
Author: Elena Visser
Rishi Sunak is to keep the emergency loan scheme under review
On Tuesday evening, the Chancellor said he would look to other countries to see if the Government could “learn and improve” on the bailout scheme for small businesses, which provides loans of up to £5 million on an interest free basis and 80% guaranteed by the government.
The government has faced calls to consider adopting similar schemes to those in Switzerland and Germany, where state guarantees of 100% of loans have sped up help to businesses.
Many companies have criticised the scheme since its launch, saying that banks have been slow to respond to inquiries given its complexity or have demanded stringent requirements that have stopped them being able to take advantage of the loans.
Efforts have been made to simplify the process however and it is expected that there will be an acceleration of the loan scheme in the coming days.
Ambition Board co-ordinates vital cash support for businesses in North Wales
Councils in North Wales are helping companies access vital business support. Driven by the North Wales Economic Ambition Board, the six local authorities in Gwynedd, Wrexham, Anglesey, Flintshire, Denbighshire and Conwy are working to inform organisations and the self-employed about the financial packages and benefits available to them.
The financial assistance available includes the £1.7 billion package of support for businesses that was announced by the Welsh government, including grants for small businesses, a year-long rates holiday and the Economic Resilience Fund for companies not eligible for business support schemes.
In North Wales, Business Wales is in close contact with businesses to offer advice and guidance. Ken Skates, Minister for North Wales, said that by pulling together, they can try to work through this difficult time.
To apply for business support through your Council and for the latest information from Business Wales please click here.
Please see our daily updated Financial Support Guide for Businesses for further information- COVID-19 FINANCIAL SUPPORT FOR BUSINESSES
For more information on any of the points raised, please contact our corporate team.