The Government must make lenders move faster to access the special loan scheme or businesses will fail, says the FTA.
On 2 April, Chancellor Rishi Sunak MP announced changes to the government’s Corona Business Interruption Loan Scheme, vowing to take “all action necessary” to make sure government backed loans were benefitting businesses as planned.
But only a month later, FTA, the business group representing the logistics sector, has called on Mr Sunak to step in again and make the scheme work for businesses across the sector, many of which are currently being stalled or ignored by lenders.
“It seems banks are simply not listening to the Chancellor and are failing to process applications for financial support from stricken businesses quickly enough,” explains David Wells, CEO of FTA. “The CBILS application process needs to be much faster, and more transparent, so that businesses can receive the vital support they are entitled to under the scheme without delay.
“According to FTA’s own polling of businesses from across the sector, nearly a quarter of all logistics companies told us they face potential collapse in the next eight weeks, with 80% needing better access to CBILS to survive.