Decision details

As part of its response to support small and medium sized businesses with the impacts of the Covid 19 pandemic, the Government have announced the provision of a Bounce Back Loan Scheme.  The Council’s development and construction companies (ADL and ACL) are eligible for this scheme although, as 100% owned Council companies, the approval of the Shareholder is required to make any borrowings under the specific Shareholder Agreement.

The Leader as Shareholder is asked to:

1)  Authorise the Aequus Companies (ADL and ACL) to access the Government backed, Bounce Back Loan facility for small and medium sized businesses, to support their working capital as a result of the Covid 19 pandemic.

The Covid 19 pandemic is having an unprecedented impact on business and the economy and the Government have put in place a range of measures to support business with the economic impacts they are facing.  This includes the Bounce Back Business Loan Scheme.

As the Council owned private rented and housing development companies, ADL and ACL, the Covid 19 pandemic and resulting lockdown has impacted on rents received and housing sales, together with the progress of development activity.  These impacts are currently anticipated to be relatively short-term in nature and the companies have detailed actions and plans in place to deal with the issues arising.

The potential to access the Bounce Back Business Loan Scheme will provide valuable working capital at a time when contractors are returning to work and staff are returning from furlough to recommence business for the companies after a period of significantly reduced activity.

This decision is to be made under part 4G Rule 4 of the Council’s Constitution as an urgent decision. This matter is urgent to enable application to the government loan scheme to address the immediate cashflow implications from the Covid-19 restrictions that impact business income.

Not applicable.