LEIA has written to the Minister for Business and Industry on behalf of members calling for an urgent reform of the Coronavirus Business Interruption Loan Scheme (CBILS), or to provide an alternative source of liquidity for businesses.
LEIA has been working closely with members experiencing frustration at the barriers to accessing the loan; resulting in a detrimental impact on their businesses and the industry.
Nick Mellor, MD of LEIA, said “Whilst LEIA welcomes the financial support package set out by the Chancellor, access to working capital promised is not being delivered to businesses quickly enough. In addition, the conditions and interest rates of the loans available are simply not appropriate when the situation is out of the borrower’s control. We need assurances from the government that it will address these issues and support our industry which is ultimately responsible for servicing some of the most vulnerable in society.”
LEIA has urged the government to ensure the urgent flow of funds and to provide 100% backing for loans to viable companies or provide alternative sources of funding at this crucial time.
A recent survey of members earlier this month revealed that:
> 95% of respondents had suspended, to some degree, their maintenance and repair operations. 50% had suspended more than 40% of operations.
> 35% of respondents stated they would struggle to sustain a viable business in current market conditions for more than 3 months.
We will continue to update you on developments.