Bouncing Back

The big news this week was the announcement of bounce back loans – the new 100% government backed loan scheme for small businesses. 

Businesses will be able to borrow between ￡2,000 and ￡50,000, with loans interest free for the first 12 months. The Government has also ordered banks to agree upon an industry-wide interest rate of less than 3% (the rumour is 2.5%). The scheme will launch for applications on Monday.

Loans shouldn’t be the only offer on the table. And they aren’t for businesses operating out of premises that have a rateable value up to a maximum of ￡15,000 who get ￡10,000 grants, and companies in the retail, leisure and hospitality sectors with a rateable value of between ￡15,000 and ￡51,000 who get ￡25,000 grants. (You can check whether you're entitled to a grant here.) However, as the FT reports (paywall), there are more than 10,000 small businesses in England that are missing out because they are based in shared offices.

The problem arises because the Government is forced to rely on existing systems to target support. In the short term the Government needs to find better workarounds to deliver fairly to everyone (something we will continue to work upon), but in the medium term we need reforms so we are better prepared.

I've written for Forbes on why Estonia's digital state was better prepared than many countries for dealing with the impact of coronavirus. The article explains why we have something to learn from them on digital healthcare, welfare, cabinet, voting, education, justice, and much more. The Estonian system isn’t perfect. For example, it lags behind the UK on innovations like Open Data. But decades of reforms have made Estonia less fragile than many to the pandemic.

Calling all Female Founders

We’re gearing up for a flurry of activity with our Female Founders Forum project that we run with Barclays.

As my colleague Jess Etherington explains in our latest Female Founders Forum newsletter: “We are launching regional roundtable Eagle Lab events across the UK. It is an ambitious, far-reaching programme that will bring our tried and tested formula of events from London to Manchester, Birmingham, Cardiff, Edinburgh, Southampton, Leeds and Newcastle.”

We will address four “scale-up” topics, with each roundtable focusing on a particular theme and provide you with more details about the events in our upcoming newsletters. The first event is due to kick off in September and will either be a physical or digital event, depending on local conditions and the lockdown.

If you want to get involved, get in touch with Jess, and please forward this email on to anyone you think might be interested. Sign up to the Female Founders Forum newsletter to be kept up-to-speed with all the work.

Good Hospitality

A row has been brewing between companies and insurers on what is covered under insurance policies. The FCA is asking the courts to get involved (paywall). Separately, the Hospitality Insurance Group Action (HIGA) has just been launched. Hospitality sector policyholders can register their details on the HIGA website if they would like Mishcon de Reya to conduct a review of their business interruption policies. The review will be free of charge. The firm will then ascertain which policyholders have coverage in principle to assess the viability of a group action against insurers.

Read the whole newsletter here, and sign up to the Newsletter here.