Grants not loans, says FMB
28th April 2020

The chancellor’s announcement of a micro loan scheme for local businesses has received a guarded welcome from the Federation of Master Builders, which is calling for a grant-based support fund to help SMEs get back into business after lockdown.

Chief Executive Brian Berry said: “The Chancellor has listened to local builders’ concerns about cashflow, raised by the FMB, and brought forward a simple loan scheme for viable firms. This marks a positive step when just 4% of builders were able to acquire credit through previous schemes.

“Cashflow is currently builders’ biggest headache because many construction sites remain shut. The combined challenges of accessing scarce materials, working safely in a client’s home, and protecting the health of the construction workforce, has left many firms unable to continue bringing income in. An SME Support Fund in England, and Northern Ireland, similar to the ones in Scotland and Wales, is needed to issue grants and ensure that these firms can hit the ground running post-lockdown. Builders, and the construction industry, will thrive if they are able to reinvest their profits back into the economy, rather than paying back a loan.”