The Welsh Liberal Democrats have called for greater support for small businesses across Wales, following an announcement of additional loan support from the UK Government.
Chancellor Rishi Sunak today told the House of Commons that small businesses are to get access to 100% taxpayer-backed loans from the start of next week.
Loans of up to £50,000 would be made available and paid within days of application, aiming to unlock a backlog of credit checks by banks amid fears many small firms could fold before getting loans.
The loan terms mean that no capital or interest repayments will be due for one year, with the government paying the interest for the first 12 months. The Treasury has confirmed that this scheme applies for all four nations of the UK, meaning Welsh businesses can apply under this scheme.
However, there are concerns 'ForgottenLtd Companies', those who either have no businsses premesies or are not VAT registered due to their turnover being below £85,000 per annum, are continually being let down and forgotten about under many of these business support schemes.
Welsh Liberal Democrat Leader Jane Dodds said:
“Due to Coronavirus we are living in unprecedented and uncertain times. Many businesses across Wales are struggling due to uncertainty about when the lockdown will end.
“This is especially true for smaller firms, those who only employ a few people and thus do not have huge reserves to pull from, and those who are too small to have business premises, so do not qualify for the Economic Resiliance Fund.
“If these businesses continue to face delays and uncertainty many will fold, destroying the lifeblood of so many of our communities. We need to ensure these businesses get the help and support they need now.
"The Welsh Government needs build upon these new loans and explore how we can go even further here in Wales to give Welsh businesses of all shapes and sizes the support they so desperately need.”