Layla Moran, the Lib Dem MP for Oxford West and Abingdon, has written to the Chancellor, Business Secretary and CEO of the Financial Conduct Authority calling for more support for small businesses in Oxfordshire, after speaking to constituents who were unable to get the financial support they need.
Layla said that the new ‘Bounce Back’ loans for small businesses, announced after she sent her letter, were “a good start” but “we need more banks to be added to the list if accredited lenders to speed up the process.”
In her letter, Moran highlights that one business was not given a loan because they needed to provide 2 years of proof of profit, even though the company was younger than that. Some constituents have been turned away from Barclays “without any reason given”, or due to ‘affordability’. Layla also noted that many insurers were refusing to pay small businesses for claims, and called on the Government to “step in”.
Layla Moran said: “So many of my constituents who are small business owners are in despair at this situation. I wrote to the Government because they’re in real danger of going bust, and they made their frustration clear to me.
“The Government needs to significantly expand the number of accredited lenders for the business support loan - opening it up to newer banks and alternative providers will vastly improve the industry’s capacity to get loans to the small businesses that desperately need them.
“The new ‘Bounce Back’ loans are a good start, but without more banks to process applications support may be too late for many. That’s why I’m calling on the Government to include more banks in its support scheme, and to step in to make sure insurers pay out fairly.”