UK

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The Business Secretary Alok Sharma has a haunting warning to The Banks , after concerns that up to A Million companies could work because you could be denied emergency loans.

"It would be completely unacceptable if banks were to refuse to wrong money to good companies that are in financial difficulties," said Mr Sharma said.

The government-supported loan scheme to ensure that the company Can access cash, since the UK-lockdown slows the economy.

to say But some of the loans were denied.

Speaking in Downing Street on Wednesday, Mr Sharma on the financial Crisis - When the government rescued A Number of the UK's largest banks.

"to help the taxpayer into the breach, banks, back in 2008, we are going to do with The Banks , everything that you Can to repay the favor and support of the companies and people in the United Kingdom in the time of need," He Said .

banks of your own property or savings has been criticised by the company and MPs for insisting Directors as collateral prior to approval for emergency loans.

companies have. about banks charging interest rates of up to 30% complained

"not to respond,'

the head of The Federation of Small Businesses, Mike cherry, said that banks were trying to, either, the company in the direction of "standard, expensive products" or they were "simply not respond".

"We Can 't be said in a situation where banks are addressed by successful small businesses and the lenders offer in The Business -as-usual products," He Said . "This is not business as usual. "

"you interest-free have been promised, without fees, supported by the government, the support of banks," He Said .

He Said : millions of companies were in danger of collapse, because you need urgent assistance was not provided.

The treasure chamber is the preparation for the change to The Rules of the coronavirus to its emergency lending scheme for companies facing a cash-flow Crisis , because down.

have a Lot of company, told The Bbc that the scheme will work for you, with some rejected for a government loan is secured, and The Other said, you may have to wait weeks.

The proposed rule change follows a furious behind-the-scenes dispute between The Banks and the government about whose fault it is that there are too few emergency have been offered loans to companies in need.

Privately, The Banks say, it is the government that rules in The Way . You are required to loans to companies under normal market conditions, When - and only companies that Can not get to qualify for a conventional loan for the scheme.

But the Treasury is now said to be scrap, as a rule, plan so that The Banks Can borrow faster.

Another obstacle is the demand from banks has been set, the Directors of the company, their own assets At Risk by signing personal guarantees When borrowing £250,000 or more. This is also expected to be addressed.

research from a network of accountants suggested that almost a fifth of UK small and medium-sized businesses that were unlikely to get the money you need to survive The Next few months, under the existing scheme.

The study said that between 800,000 and A Million companies need to nationwide close, perhaps soon.

Acting leader of the liberal Democrats, said Sir Ed Davey : "In a time When the whole country come together to fight Covid-19 it is increasingly clear that the government is left only to provide large banks, the coronavirus-business interruption-loan. The big banks are not easy to rise to The Challenge .

"Too many small businesses report long delays, high interest rates and will be asked for personal guarantees. "

Banking industry Association Uk Finance said that lenders were working "hard" to get money to businesses as quickly as possible under the government-supported system, or by the range of normal loans.

But The Group stressed that The Banks are only lending to the government the conditions to not give if you were able to "below normal" criteria.

"The Business Secretary said today, this is delivered a new arrangement to Tempo, and there are problems that need to be addressed," Stephen Jones , who runs, said The Trade body.

'Stranded ' mid'

Rain Newton-Smith, chief economist at the CBI business lobby group, told The Bbc 's Today programme: "I think everyone is trying their best to complicated to have The System up and running, but The System itself is.

"What we really need to see is to hear the state Treasury, which the company and The Banks say in order to make it easier to be distributed for these loans. "

she added that The Other challenge for the company was that "there is a whole series of what we call the 'stranded in mid -' that are too large for the government's short-term interruption of business loans, but too small for The Bank of England, the commercial paper".

"these are big regional employers in Cumbria to Coventry, and we just Can 't afford to lose you, just because you have a turnover of More Than £45m. "

uk banking, uk economy, coronavirus pandemic, small businesses, alok sharma, companies

Source of news: bbc.com