A Cornish manufacturing firm is facing financial disaster because a loophole in the Government鈥檚 coronavirus loan scheme means it can鈥檛 tap into vital funding.
Gripsure, a specialist producer of non-slip decking, has had trouble accessing cash via the Government鈥檚 Coronavirus Business Interruption Loan Scheme (CBILS).
It comes as figures from 海角视频 Finance show just a fifth of applications to the scheme, announced by Chancellor Rishi Sunak, from small businesses have been approved.
Gripsure has been unable to borrow up to 拢250,000 needed to survive during lockdown because its bank is not on a list of approved lenders 鈥 despite being a well-known and reputable company.
The St Austell-based firm, which was trading successfully before the pandemic struck and even exporting to Europe and Japan, wants to access the Government鈥檚 Coronavirus Business Interruption Loan Scheme (CBILS), but its bank, the Swedish investment bank Handelsbanken, is missing from the list of accredited lenders and partners, despite operating extensively in the 海角视频 and having offices in Plymouth.
It means Gripsure, which has furloughed eight of its 12 workers, has had to approach other lenders on the list but found leading banks won鈥檛 lend to non-existing customers and smaller lenders can鈥檛 provide the sums required.
Mike Nicholson, who founded Gripsure in 2010, said he has still made an application for a loan, interest free for a year, but the sum required has been 鈥渃apped at a third of what we need鈥.
鈥淲e are caught between things,鈥 he said. 鈥淭here is a process but it doesn鈥檛 work. I鈥檓 very frustrated.鈥
海角视频 Finance figures released on April 14 show that 6,016 of the 28,461 small business finance applications made through CBILS have been successful.
Mr Nicholson said his firm should be able to access up to 拢250,000, without parental guarantee, but has been stymied.
He approached Handelsbanken 鈥 which he described as 鈥 a good bank and we are very happy with them鈥 - but it could only offer a commercial loan which would require securing against assets such as Mr Nicholson鈥檚 own house.
He said the major banks involved in the scheme, run by the British Business Bank, won鈥檛 lend to a non-customer and smaller lenders can only provide such alternatives as asset finance and invoice finance, which he said are not suitable for a small firm with little in the way of assets to secure against, and no invoices coming in because of the pandemic lockdown.
In desperation Mr Nicholson has even written to his MP, Tory Steve Double.
CBILS - approved lenders
ABN-Amro, Aldermore, Arkle Finance Ltd, Art Business Loans, Askif Inclusive Finance, Bank of Ireland 海角视频, Bank of Scotland, Barclays, BCRS Business Loans, Business Enterprise Fund, Calverton Finance, Chamber Acorn Fund, Close Brothers, Clydesdale and Yorkshire Banks, Compass Business Finance, County Finance Group, Coutts, CWRT, Cynergy Bank, Danske Bank, DSL Busines Finance, Enterprise Answers, Finance for Enterprise, First Enterprise, GC Business Finance, Genesis, Haydock Finance, Hitachi Capital (海角视频) Plc, HSBC, Let鈥檚 Do Business Group, Lloyds Bank, MSIF, Metro Bank, NatWest, Newable, Oak North Bank, Robert Owen Community Banking, Santander, Secure Trust Bank Commercial Finance, Skipton Business Finance, SWIF Finance, Starling Bank, The Co-operative Bank, RBS, TSB, 海角视频SE, Ulster Bank.
鈥淲e are a successful company but are struggling, as most companies are struggling,鈥 Mr Nicholson said. 鈥淚n fact, SMEs are struggling to get any money at all.鈥
He said he still has to pay his staff, including the furloughed ones until he can claim the money off the Government.
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鈥淚t鈥檚 all to do with cash flow,鈥 he said. 鈥淚f you don鈥檛 have cash in the business you die. That鈥檚 the problem. We have about another month. I have to get through April and pay my staff, and my suppliers, because we were building up stock. I have to get a loan, I have 12 people and have to safeguard them.
鈥淲e are a good, successful company. If a company like mine can鈥檛 get help, what鈥檚 the hope for anybody?鈥
CBILS is managed by the British Business Bank through accredited lenders and approved partners, and the bank鈥檚 website said: 鈥淧lease ensure that you, or any intermediary you may work through, only apply for a CBILS-backed facility through an accredited lender or partner.鈥
It added: 鈥淲e are accelerating accreditation for some existing lenders to be able to provide additional variants of the CBILS scheme, and accepting applications for new lenders to undergo accreditation.鈥
