The British Chambers of Commerce (BCC)+ has said that just 1% of companies who had applied for the Government’s Corona-virus Business Interruption Loan Scheme (CBILS) had been successful – and 7% had received grants.
It also warns that more than half of the small businesses surveyed have enough reserved for three months, while 6% had already run out of money.
And 37% said that they planned to furlough between 75% and 100% of their workforces by the end of this week.
The results were part of the BCC’s Coronavirus Business Impact Tracker, which serves as a barometer of pandemic’s impact on businesses and the effectiveness of government support measures. More than 1,000 businesses took part.
With the CBILS, the survey found that 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.
It is hoped that the Government’s announcements made at the beginning of the month will see an increase in successful take-ups.
The BCC said that 7% of respondents were currently using grants for small businesses, but 14% had been unsuccessful.
When asked about the reasons they were unsuccessful:
- 83% said they did not meet the criteria
- 14% said they had a slow or no response from the relevant body
- 8% said there was insufficient information or guidance available
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.
“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 frontline more quickly.”
