27Apr 2020 by Sam Al-Hamdani

Lib Dems lead cross-party call for clarity on coronavirus loan scheme

Parliamentary news
The Liberal Democrats are leading a cross-party call for the Business Secretary to provide clearer guidance to lenders regarding Business Interruption Loans, following reports that lenders have been slow to approve loans to struggling businesses due to extensive due diligence processes. Liberal Democrat MP Wera Hobhouse has been joined by over 20 MPs from across the political spectrum in writing to the Business Secretary to call for the additional guidance. The letter asks that the Government sets out the "minimum level of due diligence required" to underwrite loans, criteria which would enable lenders to process applications at a faster pace. This would help to ensure business owners benefit from the scheme as soon as possible. Wera Hobhouse, Liberal Democrat MP for Bath, said: “Business Interruption Loans offer a much-needed lifeline…
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03Apr 2020 by Sam Al-Hamdani

Government loan scheme changes “miss the crucial problem”

Parliamentary news
Acting Leader of the Liberal Democrats Ed Davey will argue the Chancellor's latest changes to the Coronavirus Business Interruption Loans Scheme still rely too much on traditional lenders, and will call on the Government and the British Business Bank to fast track cash to desperate businesses by opening the scheme to new lenders including the UK's growing Fin Tech industry. Acting Leader of the Liberal Democrats Ed Davey said: “Although the Chancellor's loan scheme is well-intentioned, it was badly designed from the start and the latest changes don't address the fundamental flaw in terms of the over-reliance on traditional lenders.   “Despite huge handouts in the 2008 financial crisis, the big banks have shown themselves institutionally incapable of serving the needs of Britain's small and medium sized businesses, at the speed this crisis demands. The Chancellor…
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