Rishi Sunak today unveiled the introduction of the Pay As You Grow initiative as part of the Jobs Support Scheme, to help support businesses and employees who need extra support beyond the furlough scheme. The new Jobs Support Scheme allows for the government to top-up wages, whilst the Pay As You Grow initiative permits longer windows on repayments of bounce back loans.
Luke Davis - CEO of IW Capital - comments:
"These measures will be a relief to many businesses and especially small businesses that have struggled in the past six months to continue trading. The last thing any business founder wants to do is close their doors or make workers redundant and so continued support will undoubtedly be welcomed.
There is, however, another way to combat unemployment that has so far been largely glossed over. For those businesses who have pivoted or adapted quickly, or that offer services that cater to our new way of living and working there are significant opportunities for growth. This more often than not leads to more employment, especially in the SME sector.
Making growth investment more easily available to SMEs that are looking to grow should be a priority. Following our investment into Transcend Packaging - a firm who have shifted to PPE production - they have nearly doubled their workforce. This demonstrates the value of extending the scope of SME investment schemes such as the Enterprise Investment Scheme which we hope will be addressed in the near future."