Three quarters of pubs waiting on loan decisions

By Nikkie Thatcher

- Last updated on GMT

Waiting game: some pubs still haven’t received the loans and grants to help them weather the coronavirus crisis
Waiting game: some pubs still haven’t received the loans and grants to help them weather the coronavirus crisis

Related tags: Coronavirus

Some 75% of pubs and breweries are still waiting for banks to decide on if they will receive the Government-backed loan they have applied for, new research has found.

The British Beer & Pub Association (BPPA) survey also revealed 58% of leased and tenanted pubs were yet to receive a £10,000 grant and 61% of pubs hadn’t yet received the £25,000 grant they were eligible for.

The research also found there was a “postcode lottery” on the delivery of grants, with the pay-out rate varying between local authorities.

The BBPA reported none of its member companies said they had been declined support by one of the available loan schemes but just one quarter (25%) have so far been told their application has been successful.

Significant cash flow issues

However, of the applications made by individual pub lessees and tenants for one of the Government-backed loan schemes, 11% had been successful.

BBPA chief executive Emma McClarkin said: “More than half of pubs are yet to receive grants they are eligible for and 75% are still waiting on a decision on the Government-backed loan they have applied for.

“Pubs and breweries have large costs to cover so they are experiencing significant cash-flow issues. How can the Government expect them to survive the Covid-19 lockdown without this vital financial support?

“If the Government doesn’t take decisive action now to widen and speed up the delivery of grant payments and loans, pubs and breweries are at real risk of not surviving the lockdown and jobs will be lost across the UK.”

Support urgently needed

She added: “We welcome the introduction of the Bounce Back Loan Scheme​ to specifically help small businesses but ask that pub and brewery applications are prioritised and processed quickly.

“For the sake of all communities across the UK our pubs and breweries serve, and the 900,000 people employed by them, the Government cannot allow them to close.

“The UK’s 47,000 pubs urgently need the support they have been promised. The Government must deliver it now.”

Related topics: Legislation, UnitedWeStand

Related news

Show more