A Teesside MP has called on banks to do their bit in the national fight against the coronavirus whilst welcoming additional measures to support businesses.
Stockton South MP Matt Vickers said that banks who had previously been rescued by the tax payer should now be playing their part in supporting businesses through the pandemic.
The MP has received complaints from numerous local businesses who’ve approached banks and been refused loans through the government backed (Coronavirus Business Interruption Loan) scheme or been hit with additional conditions and charges.
An additional bounce back loan scheme was launched yesterday and Mr Vickers is asking banks to rise to the challenge.
Matt Vickers said:
“When disaster struck for the banks in the financial crash the government and taxpayers came to the rescue.
We now need them to return that support so that we can keep our businesses afloat and protect jobs - instead they appear to have been looking at opportunities to cash in on the crisis.
The government is offering up 80% and in some cases 100% guarantees and yet banks have been unwilling to offer up the loans on these terms.
I’ve taken this issue up with the treasury and also written to the CEOs of banks where local businesses are facing challenges.
I hope that banks will be more helpful to businesses in applying the new bounce back loan scheme which is 100% guaranteed by the government”.