The government must ensure that financial support is not out of the reach of smaller businesses. Loans are not a substitute for grant aid when it comes to keeping ‘viable but vulnerable’ businesses open.
We must ensure that the necessary cash urgently gets as quickly as possible to the place it is needed most. I am concerned that too many businesses and self-employed people are falling through the gaps.
I am still of the firm belief that grant aid and not loans are necessary to keep these viable but vulnerable businesses open until such time as they are able to operate again to their full potential. We bailed out the banks – now we need a bail out for our businesses.
We need to realise that enabling businesses to stay open, employ people and keep our towns and villages alive makes economic and social sense. It has to be the only show in town.
Boarded up shop fronts, long queues for unemployment benefit and reduced tax returns for the exchequer must be avoided at all costs.
Larger companies are often far better placed to avail of these funds. They can afford the accountants and financial expertise to draw down large portions of funding.
Cash needs to be within the reach of these small businesses. Businesses hear about millions and billions that are there, but just not for them. The owner of one business described it to me as like being in the deep end of a swimming pool and trying to reach out and grab onto the ledge only to find that it keeps moving further away.
Only a radical approach to providing the necessary and urgent finance to these businesses will get us out of this crisis.
