COVID-19: Startups in UK call on gov’t for help after launch of £330bn loan scheme

COVID-19: Startups in UK call on gov’t for help after launch of £330bn loan scheme

- Startups in the United Kingdom (UK) have asked the government to assist them access funding to support their businesses

- The startups revealed that they do not have funds to support their businesses because they are not profitable

- The UK government has set aside £330 billion as a loan scheme for businesses affected by the coronavirus

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Startups in the United Kingdom (UK) have called on the government for assistance as the coronavirus continues to affect businesses.

Information available shows that the government earlier launched a £330 billion loan scheme as well as other relief measures for businesses reeling from the effects of the virus.

However, some of the startups are unable to access the funds because they are not yet profitable.

COVID-19: Startups in UK call on gov’t for help after launch of £330 bn loan scheme

UK Prime Minister, Boris Johnson Source: Business Insider
Source: UGC

READ ALSO: African startup teams up with Visa to provide fintech systems in Africa and beyond

Per a report by CNBC, the UK has formally been on lockdown since Monday, March 23, 2020.

Some lenders have also come under fire for calling for personal guarantees before they issue emergency loans.

An acceptance of the terms, YEN.com.gh has gathered, would imply a green light given to banks to go after assets of individual company directors if the business is unsuccessful.

The top four banks in the UK, Barclays, RBS, Lloyds and HSBC, have indicated that they would not accept personal guarantees as security for coronavirus-related loans of up to £250,000.

Meanwhile, the French government has set aside a $4.3 billion relief programme for startups in the country.

The decision is an attempt to protect the businesses as the coronavirus continues to affect people and economies all over the world.

YEN.com.gh understands that the government spent the last five years providing support for startups in the country and this led to an upsurge into the top ranks of European startup hubs.

In a bid to sustain the momentum, France’s Digital Minister, Cedric O, has given details of a financial rescue plan for the startups.

READ ALSO: Reports show African startups could have raised $2 billion in 2019

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