SMEs struggle to get bounce back loans

Concerns that a number of small firms missed out on government-backed coronavirus loans have led to calls for banks to ensure that no SMEs eligible for funding are “locked out”, with MPs saying lenders accredited under the scheme should re-open applications for bounce back loans. Mel Stride, chair of the Treasury Select Committee, said: “Accessing these loans may be a question of life or death for some of these businesses.” Pointing to reports that some eligible firms had missed out, he added: “If these reports are true, then it would be very concerning that businesses may be facing lengthy delays or are unable to access the scheme at all.” With it shown that of 28 lenders that have received accreditation to issue bounce back loans, just six are currently open to applications from new customers, Kevin Hollinrake, leader of the all-party parliamentary group for fair business banking, said a ll accredited lenders should “do the right thing”. He added that banks must “open their doors to new customers”. Shadow Business Secretary Ed Miliband has urged the Government to “work with lenders to ensure they reopen applications and assess them fairly”.