East Lothian MP Kenny MacAskill highlights banks' refusal of bounceback loans to charities

Scheme ‘must work for third sector’ as well as businesses

Kenny MacAskill has written to the Chancellor

CHARITIES have been left struggling because banks are refusing them loans under a UK Government scheme to help them through the coronavirus crisis, an MP has claimed.

Kenny MacAskill, SNP MP for East Lothian, said the TSB had turned down a request from Fringe by the Sea, saying it did not offer the loans to charities - despite official guidance that charities are covered by the scheme.

And he claimed other banks were taking the same approach.

Now Mr MacAskill has written to Chancellor Rishi Sunak urging him to ensure the Bounceback Loan Scheme (BBLS) works for charities as well as businesses.

He said: “Charities up and down the UK – many of which provide vital services and support for communities – have been hit hard by the economic impact of coronavirus and need UK government support to continue to provide these much-needed services.

“The Bounceback Loan Scheme brought in by the UK government intends to do just that - but right now it is being undermined by those banks refusing to issue bounceback loans to third sector organisations. The Chancellor must take action to stop this immediately so charities can access the same available support as businesses.

“I would also urge banks who are working on this basis to rethink their position – this is a time when charities will prove particularly vital for communities with many people falling on hard times because of the coronavirus pandemic.”

A TSB spokesman said: “Our focus in recent weeks has been on providing support to small businesses which make up the vast majority of our applications.

“We have only received a small number of BBLS applications from not-for-profit customers with business banking accounts. TSB hasn’t provided lending to not-for-profit organisations in the past, but are looking into the feasibility.”