Throughout the COVID-19 pandemic, the UK Government has worked tirelessly to support thousands of businesses across Scotland. Initiatives such as ‘Eat Out to Help Out’, the job retention furlough, and the VAT cut have been lifelines for workers and business owner alike. As well as providing assistance directly, the Government has increased funding to the devolved administrations too, to allow them to finance their own relief efforts.
One of the most significant measures has been the Bounce Back Loan scheme. Treasury statistics show that the UK Government has paid out over £2 billion to around 65,000 firms in Scotland. The project was introduced in May and offered up to 25% of the turnover of small and medium businesses - up to a maximum of £50,000. The Government has also agreed with lenders that an affordable flat rate of 2.5% interest will be charged on these loans, and repayment will not be due until after the immediate crisis has passed.
The Chancellor has received praise from a range of business leaders and pro-enterprise organisations. According to the Confederation of British Industry: ‘The Chancellor is standing shoulder-to-shoulder with small businesses to help them through the crisis. A 100% government guarantee on loans and a simple way of applying, will be a lifeline to many small businesses and sole traders under pressure.' Enterprise Nation small business network have commended the Government on providing finance to smaller firms that might otherwise struggle to access it.
Some of the projects biggest success stories are coming from small BAME owned businesses such as Glasgow based rum distillery Island Slice. The firm’s founder Sylvester Herman is originally from the Caribbean nation of St Lucia and wanted to bring something of the tropical paradise to Scotland with his range of craft rums and cocktails. Government loans have allowed him to open his own distillery whilst he was unable to sell to the public. According to Herman, the loan pushed his enterprise forward by a couple of months, and without it, he would struggle to resume trading following lockdown.
On the whole, the scheme has clearly reinforced the Conservative commitment to British and Scottish businesses. Small enterprises are the engines of the economy and will be a vital part of our future recovery. The Chancellor is aware of this, and his actions with BBLS will help us all tomorrow.