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MP represents small business concerns directly to Chancellor with question in Parliament

Warwick and Leamington MP Matt Western this week (Monday) asked the Chancellor of the Exchequer, Rishi Sunak, why other countries have been able to get cash out to businesses in greater quantities and in faster fashion than we have.

Matt said that speed and simplicity is ‘critical’ in an economic recovery such as this, citing Neel Kaskari, who led the US federal bailout scheme in 2008-9, who said the primary learning of that global crisis was that they did not get the cash out to businesses fast enough.

Matt’s intervention comes as it was revealed that France and Germany were backing all coronavirus interruption loans at (or close to) 100%, opposed to our scheme which backs 80%. As of last week, The French scheme has made 174,000 loans worth €24 billion, and Germany lent €8.5 billion to 13,000 firms, with an approval rate of 98 per cent. In contrast, 16,600 firms in the UK had received loans worth a total of £2.8 billion, with an acceptance rate of 46 per cent.

Earlier, the Chancellor announced new, smaller loans that he promises will be 100% backed by the Government and will be paid out quickly.

Speaking about his intervention and the new scheme, Matt said:

“Talking to small businesses every day as I do, I know they are burning through cash and need funds urgently in order to survive.

“I’m glad that the Chancellor has listened to mine and many others’ (such as the CBI) calls and announced new 100% Government-backed loans of up to £50,000 for small businesses which promise to be paid out very quickly. This is welcome, as far too many businesses applying for the current loan scheme are simply not getting the money out of the banks.

“But for many businesses, this has come too late. Additionally, the many businesses that need more than this what is on offer will still have difficulties in getting sufficient cash to survive.

“The reality is that for any recovery to be successful, sufficient cash needs to be paid out as quickly and simply as possible, which is exactly what France, Germany, and Switzerland are doing. If these countries can do this, why can’t we for our businesses?

“I have liaised with business representatives as well as assisted individual businesses to ensure they get the support they need. I will continue to do all I can for our fantastic businesses. Please get in touch if you need support.”

To find out more about the new loan scheme, visit gov.uk/government/news/small-businesses-boosted-by-bounce-back-loans