‘Tackle blockages in virus loan
scheme’ – FMB
7th April 2020

The Federation of Master Builders is urging the Chancellor to tackle blockages in the Coronavirus Business Interruption Loan Scheme (CBILS) after a survey revealed more than four fifths of members were still waiting for a reply to their application, 10% have been rejected and around half found the application process ‘somewhat or very difficult’.

Chief executive Brian Berry says the scheme needs to be fast-tracked and the criteria clarified as soon as possible to stop small construction firms going to the wall.

He added: “It is no wonder that members are reporting they are finding the process difficult. I am hearing time and time again about members who have been told by their bank that they will get back to them and never do, and others who have had to wait for hours on the phone to speak to their bank manager. Others have been told by their lender that they must apply by post. Sadly, we are still hearing of members who are being asking for a personal guarantee or being forced to take out an overdraft with high interest.

“There also seems to be some confusion as to who is covered by the scheme. SME house builders are crying out for financial support, but many are being turned away by lenders. The Government should work with Homes England and the devolved administrations to help find a way to keep SME house builders afloat in this time, ensuring that they are ready to resume building high quality homes after the coronavirus outbreak.”