The Federation of Small Businesses (FSB) has urged the government to increase its 80% guarantee on emergency coronavirus (COVID-19) business interruption loans.
New data from UK Finance has revealed that 16,624 of 36,186 small business finance applications for a Coronavirus Business Interruption Loan Scheme (CBILS) facility have been approved. According to UK Finance, the average value of a CBILS loan is £171,000.
However, the FSB has called on the government and banks to streamline the application approval process and make more money available to the smallest UK firms.
Mike Cherry, National Chairman of the FSB, stated: 'The average value of a CBILS loan stands at more than £170,000. The case studies presented by UK Finance . . . all concern firms that have managed to secure big facilities. The small shops, restaurants, gyms, manufacturers and mechanics at the heart of our communities are not seeking loans of anywhere near this size.
'The government should up its guarantee on emergency loans with values under £30,000 from 80% to 100%. That, combined with the streamlined application process that should be in place for facilities of this size, should help to get more cash to the small firms that really need it.'