“While it is to be welcomed that the Treasury is to announce changes to its emergency loans scheme for businesses, it is clear that many companies are finding that their applications have either been turned down, or the requirements placed on them by the Banks are excessively onerous. There are many ways in which Banks could be helping, including waving the requirements to have access to LPS data, which, in the current circumstances is very difficult to obtain. They could also take a broader view on the sustainability of businesses, ameliorate – or better still not charge – ‘fees’ and speed up the decision making process.
“We have received a litany of complaint about Banks from businesses and business support organisations. These have included requirements for excessive documentation and demands for deeds of homes and premises. To apply ‘pre-CoVID’ rules, seems to us at best unfair, and we would argue, it is actively working against the good of Northern Ireland businesses.
“We also call for Banks to consider those companies that have furloughed staff. who will be in receipt of 80% of wages from government, and whether this could not be used as collateral for loans. ‘C’ Bill legislation has been brought in to save the economy, but unfortunately the Banks – which we taxpayers bailed out in 2008 – seem more intent in reinforcing their bottom line rather than pitching in to help save our economy.
“Equally, we are calling for a significant windfall tax to be introduced to trim any profiteering from banks – or any other financial institutions such as Insurance companies – who are placing onerous requirements on business owners.
“The Finance and Economy Committees will be paying close attention to these institutions.”
Advertisement
