The National Federation of Housebuilders (NFB) has appealed to the government to help SME developers under pressure due to the pandemic.
The body said many medium sized businesses are too large for the small business, Coronavirus Business Interruption Loan Scheme (CBILS) but too small for the investment grade loans, though the Corporate Financing Facility (CCFF).
The solution therefore should be a medium sized business loan.
Richard Beresford, chief executive of the NFB, said: “Whilst some of the Chancellors measures will provide support for businesses, things have moved on and the construction industry – in particular SMEs – need additional support to see us through this dreadful period.
“Our economy relies on construction and as we saw with the financial crash of 2008, if our industry stops trading, most will not come back and productivity will grind to an economically disastrous halt.”
The NFB added that most construction businesses are desperate to continue working and are being innovative with their business plans to do so.
The body has written to government officials including the Chancellor, Business Secretary and Housing Secretary and has proposed a number of measures to help mitigate disaster.
Beresford added: “Revenues will soon begin to dry up and within the month, businesses will have to close.
“We cannot let that happen and we must ensure that there are health measures to ensure construction work can carry on, businesses get an injection of cash and there are no unnecessary penalties.
“Our letter to the Chancellor details recommendations to achieve this and we hope he will act on them, as soon as possible.”
