In these uncertain times the government’s unprecedented support to help SMEs has been most welcome. In particular the grant to cover 80% of wages has taken the pressure off many businesses allowing them to furlough staff until this crisis is over.
However, initial experiences indicate that the £350billion promised in the form of the Coronavirus Business Interruption Loan is not proving quite as helpful. Our experience, and that of our clients, indicate that the application process is time-consuming and tricky and some business’s are not even eligible to apply. Top that with additional security requests in the form of personal guarantees or even charges on personal property, means it is certainly not the panacea we might have hoped for.
Fortunately our key funding sources remain open and keen for business and are taking a long term view, albeit with caveats to make sure businesses have the resources to get through the next few months.
Clearly this is a time to hunker down and make the best of the current extraordinary situation. Things will improve and we’re all looking forward to when we can get back to normal.