Originally written by Timothy Adler on Small Business
UPDATED: Chancellor Rishi Sunak may change coronavirus emergency business loans yet again in the face of mounting evidence they aren’t working.
Yesterday, SmallBusiness.co.uk revealed that the majority of small businesses are having their loan applications turned down, even since the chancellor loosened the scheme on April 3.
Today, the British Chambers of Commerce announced that only 2 per cent of businesses surveyed had had their loan applications approved.
>See also: Fewer than 10% of businesses can access government coronavirus funding
On Tuesday evening, Rishi Sunak told the Financial Times that he would look at other countries to see if the government “could learn and improve” on the small business bailout scheme, which provides interest-free loans of up to £5m for up to one year before bank interest rate kicks in.
Switzerland, on the other hand, offers up to £400,000 as an interest-free loan repayable over five years. The Swiss government covers the entire amount. And cash can be accessed within 24 hours, not weeks, as in the case in Britain.
100-per-cent guarantees
George Osborne, the former Conservative chancellor and editor of the Evening Standard in London, told the BBC on Tuesday that the government should follow suit for the smallest
Tag Archive for Coronavirus
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Commercial tenants face legal action over non-payment of rent
by Anna Jordan • • 0 Comments
Originally written by Anna Jordan on Small Business
Commercial tenants are being threatened with legal action for non-payment of rent during the coronavirus crisis, despite government protection.
Last month, Section 82 of the Coronavirus Act 2020 was introduced to ban the forfeit of commercial leases until 30 June 2020 – or longer if the government deems it necessary – for not paying rent.
However, this doesn’t stop landlords from issuing statutory demand notices and winding up orders, making debt claims or pursuing Commercial Rent Arrears Recovery (CRAR). These threats are serious – winding up orders and statutory demand notices can push businesses into insolvency within days.
Larger brands that have been affected include Caffe Concerto, Pho, David Lloyd Clubs and PureGym.
Mixed reactions
Some small business owners are having to turn to unsympathetic landlords.
Janine Tozer, founder of Not Just Pets, has branches in Bath and Frome. She has two separate landlords and, at the time that the lockdown started, approached both about either deferring rent payments or paying them by half for three months. Neither of the landlords were happy with the proposals, saying that she’s still trading and should be relying on emergency government funding.
“We were doing deliveries, but we were taking less than half
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Most emergency coronavirus bank loan applications still being rejected
by Timothy Adler • • 0 Comments
Originally written by Timothy Adler on Small Business
EXCLUSIVE: Most coronavirus emergency business loan applications are still being rejected, despite chancellor Rishi Sunak overhauling the scheme.
Fifty-three per cent of Coronavirus Business Interruption Loan Scheme (CBILS) loan applications have been rejected, according to a survey of Small Business readers – despite the Treasury loosening the scheme on April 3.
Previously, high-street banks were following government guidance that coronavirus emergency business loans should only be offered to small businesses which would not qualify for a commercial loan.
The paradox is that banks were being asked to lend to companies they would normally turn down – and still be on the hook for the 20 per cent of the CBIL the government has not guaranteed.
Banks have long been reluctant to lend to small businesses, with just 2 per cent of lending going to SMEs, as they do not have the security banks look for.
Small Business surveyed 1,823 small businesses, 53 per cent of which said their coronavirus loan application had been rejected since April 3, when the scheme was overhauled.
The SmallBusiness.co.uk survey chimes with business secretary Alok Sharma’s own admission on Sunday that only 4,200 loans worth £800m have been awarded, despite over 300,000 applications.
This is
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The 5:30 A.M. Warrior Call: 104-Year-Old Man Survives Coronavirus (4/13/2020)
by Joe De Sena • • 0 Comments
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First two fintechs added to coronavirus emergency loan scheme
by Timothy Adler • • 0 Comments
Originally written by Timothy Adler on Small Business
The first two fintech banks have been added to the government’s coronavirus emergency business interruption loan scheme in an effort to break the logjam.
Other fintechs, including Funding Circle, Iwoca and Market Finance, which together have provided loans worth billions of pounds to small businesses, are also hoping to get approval to join the emergency loan scheme next week.
Only 2,500 loans worth £450m, have been agreed so far through the Coronavirus Business Interruption Loan Scheme (CBILS) out of a small business population of 5.9m.
Bankers say they have been overwhelmed with applications through the CBILS, with an estimated 300,000 enquiries.
Plus they complain that their loan book must be scrutinised by the British Business Bank, which itself is overwhelmed by the volume of loan applications.
>See also: 12 of the best digital banking platforms for small business
Yesterday, former Treasury secretary Baroness Morgan called for the CBILS to be opened up to fintechs, which, she said were more agile and more nimble than traditional lenders.
OakNorth Bank and Starling Bank have been added to the dozens of existing accredited lenders, alongside Cynergy Bank and The Co-Operative Bank.
Meanwhile, Arkle Finance, Close Brothers and Secure Trust Bank have also become accredited CBILS
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The 5:30 A.M. Warrior Call: Obesity Is a Major Risk Factor for COVID-19 (4/10/2020)
by Joe De Sena • • 0 Comments
Joe De Sena’s morning zoom call talks about why being overweight might make you more vulnerable to coronavirus.
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Coronavirus small business diary – Stitch & Story CEO Jennifer Lam
by Jennifer Lam • • 0 Comments
Originally written by Jennifer Lam on Small Business
Jennifer Lam is co-founder (alongside Jen Hoang) and CEO of digital crafts brand Stitch & Story, which sells a range of knitting kits, equipment and yarns, accompanied by a range of online tutorial videos to teach viewers knitting techniques.
Its products are aimed at people of all ages and abilities, with a range of products aimed at anyone from beginner to expert.
Here is her coronavirus small business diary:
9th March
Canary Wharf announces they’ve evacuated several office buildings because someone tested positive for Covid-19. In the Stitch & Story shared office, we see people putting up government health advice posters on all the walls and toilet cubicles. Our office is only one stop away from Canary Wharf and there’s some nervousness among our team. No one is admitting to it, but we can tell on our faces that something strange is happening.
The site manager called us for an emergency meeting to reassure us there are no plans for the building to shut but that we should prepare for the scenario. We’ve advised our Stitch & Story team to take their laptops home every night. There’s also a new rule – no personal belongings on our desks
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The 5:30 A.M. Warrior Call: Wuhan Ends Its Lockdown After 78 Days (4/08/2020)
by Joe De Sena • • 0 Comments
Joe De Sena’s morning conference call tracks the global coronavirus responses, from U.S. to Wuhan.
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Managing your small business during coronavirus – infographic
by Partner Content • • 0 Comments
Originally written by Partner Content on Small Business
It’s a tough time for everybody, but being a small business owner comes with its own set of coronavirus-related challenges.
The UK Domain have created this infographic to give you some steer through the crisis.
This article was brought to you in partnership with the UK Domain.
Managing your small business during coronavirus – infographic
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How AI Is Helping in the Fight Against COVID-19
by Ben Dickson • • 0 Comments
Artificial intelligence technologies such as machine learning, natural-language processing, computer vision and deep learning can help track and identify the novel coronavirus.