Pubs and restaurants face credit ban, say FPB

The Forum of Private Business (FPB) has urged banks not to deny credit to its members because they run pubs or restaurants.
 
The small business support and lobby group believes some banks may be refusing loans to firms in the industry due to fears over their viability.
 
The FPB is concerned that the entire sector may have been classed as high risk by certain lenders.

It said some of its members who run pubs have been denied overdrafts and loans by their banks and believe the decision was made purely because of the type of businesses they operate.

FPB national chairman Noel Guilford said: “The banks’ attitude to small businesses in the hospitality sector is disgraceful. Most of these restaurant and pub businesses are viable and will survive but need help over the next few months.

“We have evidence that banks are taking a negative blanket approach to this sector which is directly against what the government is saying they should do.”