CLC: Streamlined loans needed to avoid liquidity crunch
The Construction Leadership Council’s Covid-19 Taskforce has said that Government-backed loans to construction businesses must be “streamlined to avoid firms facing a liquidity crunch” in the coming weeks.
An industry survey conducted by the taskforce found that just 12 per cent of surveyed firms’ applications for Government-supported loans had been approved. 30 per cent were knocked back while 58 per cent were still waiting for a decision.
Firms face pressure on finances from both the current suspension of many projects, and the need to invest soon to restart works.
A statement from the CLC said: “SMEs are particularly hard-hit as they often do not have the resource to wade through the current application process, shutting them out from much needed support. The task force proposes that simple guidance is made available, helping businesses to get a decision.
“Some small businesses will benefit from the recently announced Bounce Back Loan scheme, but many construction firms will be looking for support above its £50,000 threshold.”