Fraction of businesses are getting help during coronavirus shutdown
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ONLY a tiny percentage of businesses have been able to access promised financial support, according to the latest findings from the British Chambers of Commerce (BCC).
Results from the second BCC Coronavirus Business Impact Tracker found as few as one per cent of businesses have been able to access the government’s Coronavirus Business Interruption Loan Scheme (CBILS), with just seven per cent receiving the new grants for small businesses.
A poll was conducted over the first three days of April and received more than 1000 responses, making it the largest independent survey of its kind in the UK.
Businesses continue to report a high level of awareness of the government’s support schemes with 59 per cent of businesses knowing details about CBILS and 19 per cent planning to use it and 42 per cent being aware of the small business grants available, with 24 per cent planning to use it.
However, the BCC suggests that awareness is not translating into firms successfully accessing these schemes, with eight per cent of respondents unsuccessful in accessing the CBILS. The complexity of the application process and a slow or lack of response from the relevant body were cited as reasons for those who were unsuccessful.
However, most of these cases were reported before the government announced plans to improve access to the scheme.
Similarly,14 per cent of applicants for small business grants were also unsuccessful, with 83 per cent being told they did not meet the criteria.
The study also highlighted the urgent need to ensure businesses had access to financial support by revealing that 16 per cent of firms reported less than a month’s worth of cash in reserve and 41 per cent only having a reserve of one to three months.
Of most concern, six per cent of firms reported no cash in reserve.
The percentage of business planning to furlough between 75 and 100 per cent of their employees rose from 32 to 37 per cent while the percentage of firms intending to furlough 100 per cent of their staff increased from 17 per cent in the first week to 20 per cent this week.
BCC director general Dr Adam Marshall said: “Our latest data shows that many businesses face a cliff-edge scenario, either at the end of this month or over the course of the next quarter.
“We’ve seen a big jump in the number of firms furloughing staff, and many are now starting to apply for access to government loan and grant schemes to keep themselves afloat. Yet our research suggests that support is only starting to reach firms on the ground.
“We are pleased that the Chancellor is listening and responding to our calls to strengthen the existing support. Improvements to the CBILS scheme should help more businesses get access to the cash they need over the coming days and weeks. This could be the difference between survival and insolvency for many firms.
“It’s vital that governments across the UK continue to work closely with business over the coming days. Every minute counts, and governments, local authorities and banks must do everything in their power to ensure support gets to firms on the front line more quickly.”
Is your business having problems accessing help? Email newsdesk@hnmedia.co.uk
