Chancellor converts loan scheme to Pay as You Grow
Amongst the coronavirus support updates made by the Chancellor of the Exchequer this afternoon was the extension of all loans – with particular focus on the Bounce Back Loan Scheme under the new Pay as You Grow scheme.
You might also be interested in
Replies (5)
Please login or register to join the discussion.
It wasn't covert, he was on television! :-)
(You might want to add an n to the article title)
Having wasted £9 billion on the £1k an employee still there in Jan this is strangely unhelpful.
All we seem to be doing it playing "kick the can" on the government's liability for the easy to fraud bounce back loans, and effectively funding a few firms to fiddle their part time hours.
They really aint very good at giving it out.
They would have done better with targeting on hospitality sector with some big bucks - and closing it for a month so schools can stay open this time around. Ie the complete opposite of the "eat out and help spread covid about" policy in the summer.
I fully agree with the idea that targeting hospitality with more cash would have been a much better idea.
Excellent news and very welcome. Have spoken to a few clients about the changes and it has come as quite a relief to them. Effectively halving the monthly cost will be a huge relief to many.
With the extremely low interest rate on offer they are a no brainer for most- better to have the capital buffer just in case rather than miss out and find early next year cash flow kills you off..
As for targeting hospitality, there is only so much you can throw at a sector that will emerge very different after this pandemic. And supporting one area in particular leaves you wide open to every special interest group pleading it is special or unique and deserving of more money - there isn't an infinite pot and sooner or later non-viable businesses will fail.
Employees should be looking (and have had 6 months already to get started) on training, maybe setting up their own business, reskilling, studying, etc. I wonder how many just treated it as a long holiday and did nothing to improve themselves but did manage to go on holiday and moan about that too.
CBILS - Well mybe for some businesses but I have a client:
£2.2m in assets
£200k NWB loan secured
£400k P&L reserve
Remaining finance from owner/directors
So far via 2 brokers have been unable to find a bank that will offer anything under CBILS for £197k
Why, well the £2.2m isn't a warehouse of widgets, 5 completed bungalows that ordinarily would have sold but first Brexit and then Covid are not. 1 finally exchanged yesterday and 3 are under offer but that isn't guaranteed funds. Plus the new site circa £400k including works to date
Ordinarily they would use their bankers developer finance facility but they are no longer lending to property developers. Thank you NWB, the clients bankers for 8 years
They are starting work on a new site but progress hampered by lack of cash which means little work for Subbies, less materials required and therefore less jobs for those producing the materials
And they have 3 interested parties to buy on the new site but have had to walk as there is no firm date to complete them due to lack of funds
Government wants new homes, banks won't lend money!
Poor show all round. Best hope seems to be the current properties under offer complete. When they are all sold should have nearly enough cash to complete the new site without the banks. CBILS was a buffer, a just in case