Emergency BoE measures should help small firms weather Coronavirus storm

Responding to the Bank of England (BoE)’s emergency interest rate cut and new stimulus package, unveiled in response to the Coronavirus outbreak, Federation of Small Business (FSB) National Chairman Mike Cherry said: “The Bank of England has thankfully wasted no time in taking action to try and stabilise the UK economy in the wake of the Coronavirus outbreak.

“Four in ten small firms say new credit is unaffordable, so it’s encouraging to see measures – including a rate cut – aimed at making loans less expensive at such a challenging time.

“Equally the £100 billion cash injection into banks earmarked for small business lending will hopefully throw a lifeline to firms suffering from cashflow issues.

“More than a third of small firms that secure new finance use it to manage cashflow, so it’s absolutely critical that this new funding makes its way to small firms in need as swiftly as possible. We can’t have hold-ups at the banks.

“Small firms need all the help they can get at this difficult and uncertain time and they will be hoping that the prompt use of monetary policy levers eases cashflow concerns, particularly for businesses heavily dependent on high footfall. 

“Later today, we need the Chancellor to take equally decisive action by introducing measures to stem the disruption being caused by Coronavirus and show that he is on the side of the UK’s everyday entrepreneurs.”

About FSB
As experts in business, FSB offers members a wide range of vital business services, including advice, financial expertise, support and a powerful voice in Government. Its aim is to help smaller businesses achieve their ambitions. More information is available at www.fsb.org.uk. You can follow us on twitter @fsb_policy.

Media contacts
David Moore-Crouch: 07711 486352 david.moore-crouch@fsb.org.uk