Nearly three-quarters of the emergency cash reaching small businesses is being lent by Royal Bank of Scotland (RBS), the taxpayer-owned bank has revealed, as MPs warn other banks must act with far greater urgency to offer lifeline loans to companies which are teetering on the brink.
New figures show RBS, which is still 62pc owned by the taxpayer after its 2008 rescue, has approved 70pc or 2,500 loans, under the government-backed Coronavirus Business Interruption Loan Scheme (CBILS), a key plank of the government’s plan to keep the UK economy afloat and credit flowing to struggling companies during the coronavirus lockdown.
三级成人视频Tim Colman, the owner of racing car manufacturer Chevron Cars, has written to the British Business Bank (BBB), the administrator of the loans, after struggling to get hold of the money. He wrote that his experience of dealing with the high street banks during this process has been “nothing short of catastrophic”.
“If the lack of funding continues for long, I will simply be unable to trade and my 55-year-old business will have to shut its doors,” he said. RBS is understood to be the only major bank offering CBILS loans worth below £25,000 to eligible small businesses.
Lloyds said it intends to make CBILS available to those borrowing less than £25,000 “as soon as possible” while HSBC is working on reducing the size of loans available to sole traders to below £25,000.
三级成人视频Tory MP Kevin Hollinrake, the co-chairman of the All Party Parliamentary Group on Fair Business Banking, has written to the Chancellor to raise the issue. He said that “while it is good to hear that businesses can use CBILS for loans as little as £1,000, this is not the experience of those businesses that we speak to”.
三级成人视频Dr Garry Palmer, the founder of fitness testing business Sportstest, said his bank told him that he needs to borrow at least £25,000 to access the scheme, which is interest-free for 12 months. “They said I could apply for their standard business loan – they could not give me a specific interest rate, but said it would be between 6 and 20pc interest and any payment holiday would be charged at full interest,” he said.
三级成人视频“The exact words of my adviser were: ‘unless the Government forces us to, we will not be offering CBILS loans of less than 25k’. I did look at RBS, but they were only offering CBILS loans to current clients.”
RBS is behind half of the scheme’s approved loans if only loans greater than £25,000 are counted, suggesting there is high demand among UK firms to borrow smaller amounts.