John McDonnell

propose A revised Version of the loan-Fund for ailing businesses by the coronavirus lockdown Will have a direct impact, RBS said.

RBS Chairman Sir Howard Davies admitted there had been problems, but expects a "strong increase" in lending to small businesses in The Next few days.

On Thursday, German Chancellor Rishi Sunak outdated scheme amid claims that Banks were taking advantage of The Crisis .

The government has promised £330bn of the loans, but Only £145 million in the fast time So Far .

Small businesses say they have struggled with onerous criteria for government-supported loans, the issuance of High-Street Banks and other lenders.

you have also the view on the interest rates of up to 30% and Will be prompted to unreasonable personal guarantees.

It Comes as the UK switched off prior to the recession, such as large parts of the economy.

On Friday, the influential purchasing managers ' index (PMI) survey showed that in the UK dominant services sector, its biggest fall suffered since March 1996, Will decrease to a reading of 53. 2 to 34. 5.

All of the figure below 50 marks contraction.

Mr Sunak said that in the case of a change in the Corona-Virus Business Loan Scheme (CBILS):

Sir Howard, Chairman of the Financial Services Authority (now known as the Financial Conduct Authority), May told The Bbc 's Today programme that The Process of verification of The Borrower 's suitability is "difficult".

He also said that RBS had jumped up to fight with the demand for investigations on the loans "45 times" in the week.

"I think we have to accept that the extent of them has caused this process and the speed with which it has been introduced, the challenges for all," He Said .

"But we had good discussions with the Ministry of Finance and the small firm, and I think that The Changes announced overnight is a pretty Big Difference . "

On Wednesday, When all The Banks were wrong to refuse funds to good companies in financial difficulties.

also on the financial Crisis , When taxpayers rescued A Number of the UK's largest Banks , suggesting lenders should payment for the return of the favor.

But, Sir Howard told The Bbc that the comparison of the current Crisis in 2008 was to rewrite "the story".

"In The Last Crisis was, The Problem is that The Banks do not lend The Money to, there was a credit crunch.

"We Are not in this position. The Banks have to borrow The Money , we have a large amount of capital, are we not forced, in the amounts that we can borrow. "

On Thursday, Mr Sunak said the government was doing "great progress" on the support of the company, to the management of your cash flows but needs to take "further measures" by the extension of the scheme.

But some companies feel they are struggling to get access to the loans are not Fast Enough or too risky. still have

There has been widespread concern, not recognized by the government, that The Emergency -work financial support measures to the enterprises.

a few companies felt able, or willing, to loans carried an 80% state guarantee for the lender, not The Borrower . The Ministry of Finance has announced that it Will to lend, new rules, what it means to ask an entrepreneur, to offer less than £250,000, have personal guarantees.

Perhaps more important, is tried to the request of the company, first of all, a normal loan Will be elsewhere placed.

However, they are still loans. Firm, take them out, be 100% liable for The Debt , and the government has not been able to the interest rate that Banks demand a cut, even though The Banks are able to borrow at close to 0%.

The loan can now, companies more, but what is not clear is whether the companies want to have.

labour welcomed the measures but the government accuse of being "behind The Curve " in the implementation of support measures.

"There are huge gaps in the support for employees and self-employed remain, which must be treated immediately to avoid if the people from serious distress, in this Crisis ," said shadow Chancellor John Mcdonnell .

The Head of The Confederation of British industry, Carolyn Fairbairn , described The Changes as a "great Step Forward ", although She Said more detail was needed.

"Every week brings an unprecedented level of economic support, and it is encouraging to see the government intervene, where urgently help is needed. "

Mike cherry, national Chairman of The Federation of Small businesses, told The Bbc 's Today programme: "It is a Very Necessary and timely intervention by the Chancellor is, because clearly, the companies have been promised interest-free, free-of-charge, state support through Banks .

"time and Time Again , the FSB has heard from our members and other small and medium-sized companies that have approached already, The Banks are looking for these emergency loans, you have offered nothing but. "

Stephen Jones , chief executive of Uk Finance for The Banks , also welcomed The Changes .

an interview with the Today programme, He Said : "It was clear that these viable businesses that were required to be offered under the terms of the regulation of the commercial lending under commercial conditions, felt offended that you do not have access to the System and, therefore, the amendment to the regulation on all companies that are able to, the repayment of The Debt after The Crisis is over.

"This change is very welcome and it means that Banks are not forced to make a very unenviable assessments in relation to those who can't, or are on the scheme in relation to profitable enterprises. "

the Chancellor , and The Changes go far enough? You Will make it easier For You to receive a loan under the Coronavirus interruption in loan program operation? Share your experiences by E-Mail.

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rishi sunak, uk economy, coronavirus pandemic, small businesses, companies, hm treasury

Source of news: bbc.com