Banks offer help to riot-hit SMEs

HIGH street banks are offering suppport to small firms affected by last week’s riots.

Manchester city centre, Salford and parts of Liverpool were badly damages by vandals and looters last Tuesday night.

NatWest & RBS is offering its customers interest and fee free loans of up to £25,000 to small business customers in the region directly impacted by the riots for a period of up to six months.

The lenderr said the loans are intended to help viable businesses, who would otherwise struggle to access short term funding, get back on their feet and start trading again.

They will provide immediate capital for those businesses that are waiting for financial support from either the Government or their insurance company. 

At the end of the six months, firms can either repay the loan from the Government funding or insurance payout.  Alternatively they can transfer any balances to one of the bank’s range of flexible loan products.

Mark Winters, managing director of Business Banking Director for NatWest in the North West, said: “We want to do everything we can for businesses affected by the riots.

“These loans will help firms waiting for insurance payments or needing urgent repairs to open for business as soon as possible.  I hope that other banks will also be able to help small businesses recover as the high street is vital for local communities and the wider economic recovery.”

John Walker, National Chairman, Federation of Small Businesses, said: “Many small businesses have been badly affected by the civil unrest of the last week and so this announcement will be welcomed as it will provide vital cash to get back up and running again.”

Barclays said also said it would offer emergency support measures to help business and personal customers affected by the riots.

It said measures to ease the burden on cash flow, such as as overdraft increases and loan  repayment holidays of up to six months on customers’ existing loans, were available.

Steve Cooper, managing director, Barclays – Business and Personal Banking Solutions said: “These riots are having a devastating effect on both individuals and local businesses and we are working to help our customers through these difficulties, including providing emergency overdraft facilities and loan repayment holidays of up to six months for business customers.

“It is impossible for many of our customers to operate, even those not directly affected by the fires or looting and we can play a part in taking away some of their worry at this time.”