Comment: Government offers firms new grants to survive lockdown

Following this morning’s news that the “Government offers firms new grants to survive lockdown”, Scott Donnelly, CEO of CapitalBox said: “Due to the pandemic, 60% of SMEs across Europe have had their cashflow impacted negatively. They have been unable to pay wages, to reinvest in their businesses to survive and haven’t been able to cover off outstanding debts. We welcome today’s news of the UK government making new grants available to businesses during this next phase of the pandemic. The additional support is critical as many businesses will struggle to rebuild over the next few months – especially SMEs. Our recent survey shows 56% of UK businesses have had to take out a government loan during the COVID-19 period, and 65% have needed to furlough staff. In an effort to reduce redundancies, which included 42% of companies in 2020, governments must learn from the initial phases of lending schemes and work closely with the finance sector to ensure SMEs have access to the necessary funding.”