IPSE (the Association of Independent Professionals and the Self-Employed) has welcomed new loan support for small businesses, but warns more must be done for people working through limited companies.
The comments came after the government announced that all viable businesses that have been affected by the Coronavirus crisis will now be able to access Business Interruption Loans: not just those unable to secure commercial financing.
The government also announced today that lenders will no longer be able to request personal guarantees for loans under £250,000.
Andy Chamberlain, Director of Policy at IPSE (the Association of Independent Professionals and the Self-Employed) said: “It is certainly very welcome that the government is making the Business Interruption Loans more accessible. This is a helpful addition to the generous package of support available to many self-employed people.
“Although the package is generous, however, it is important to recognise how many self-employed people are still falling through the cracks. A key group among these are self-employed people working who work through limited companies.
“Opening up the Business Interruption Loan Scheme will help some limited company contractors, but many just do not want loans because they fear falling into spiralling debt. This is a particular worry because no-one yet knows how long the disruption to businesses will last.
“We urge the government to consider the plight of limited company directors and develop bespoke support measures for them, such as temporary tax breaks or grants. The self-employed sector is complex and diverse, and the government must keep adjusting its aid package to support as many parts of this vital workforce as possible.”