The British Beer and Pub Association (BBPA) has said that chancellor Rishi Sunak’s ‘Bounce Back Loans’ programme announced earlier this week should help pubs currently struggling to access loans through the CIBIL scheme, many still have no direct grant support from the government.
The ‘Bounce Back Loans’ will be for up to 25% of turnover to a cap of £50,000. Whilst the trade association welcomes the support from the government, it has reiterated that 10,000 UK pubs have been left with no government grant support at all, as they currently aren’t eligible for the Government’s Grant scheme because their rateable value is above £51,000.
Emma McClarkin, chief executive of the British Beer and Pub Association, said: “The Chancellor’s ‘Bounce Back Loans’ will help some pubs, which is welcome. For many pubs, taking on debt in the form of a loan isn’t even a viable option.
“For those that do take out loans, it’s imperative they are given more time to pay them back to boost their chances of remaining open after Covid-19. The government has forgotten there are still 10,000 pubs in the UK who aren’t getting any government support at all because they aren’t eligible for grants.
She added: “They are without help. These pubs are viable businesses, they are the social hub that binds us all together. An investment in pubs now is an investment in the long-term future of communities across the UK.
“When this crisis is over, the first place many people will want to visit is their pub. Without further, specific support, these pubs and their communities are in jeopardy.”