Stuart Gentle Publisher at Onrec

Changes to emergency business loans scheme: REC response

The Chancellor has announced changes to the emergency loans scheme to help businesses which are struggling amid the Covid-19 crisis. Responding to the changes, the Recruitment and Employment Confederation called for more to be done to ensure companies experiencing cashflow problems can access support more quickly.

Neil Carberry, CEO of the Recruitment and Employment Confederation said:

“These changes are helpful, and expand the scope of help the CBIL process offers. There is more to do to ensure that bank requests for guarantees from businesses are appropriate, where owners have already injected their cash into the business. Raising the £250k bar for lending without guarantees would help, or only asking for guarantees for the 20% of the loan value the government promise does not cover.

“But businesses in high cashflow, thin-margin sectors ¬– like recruitment and staffing – need quicker support than CBILs is likely to be able to offer if they are to navigate this challenging time and look after their people. This is especially true for temporary agency work providers who pay their workers on a weekly basis, and cannot afford to furlough them unless there is far greater speed and clarity about when government support will be available – and access to those funds quickly.”