Lloyds refuses to give emergency loans to firms backed by Government despite being bailed out by taxpayer

A BANK bailed out by the taxpayer refuses to give emergency Covid-19 loans to firms backed by the Government.

Lloyds is rejecting applications from those who benefit from the Enterprise Investment Scheme.

Lloyds is refusing to give emergency coronavirus loans to small companies that the Government has already backed

That Treasury strategy allows small companies, whose qualities are deemed good for the economy, tax breaks to encourage financial backers to get behind them.

But the Lloyds “policy” flies in the face of the rules for the emergency loans, 80 per cent of which are underwritten by the Government.

Chancellor Rishi Sunak stressed last month he would do “whatever it takes” to see the UK through the coronavirus crisis.

Lloyds, with Antonio Horta-Osorio at the helm since 2011, got £20billion of public money 12 years ago to stop it going under.

Yet Harvey Jenkinson, who runs West Yorkshire-based gym firm Gravity Fitness, was refused a loan, calling it a “slap in the face”.

Lloyds said: “Your request for traditional bank or Coronavirus Business Interruption Loan Scheme funding is outside of our current SME lending policy.”

Our revelation is the latest failing by banks to deliver the key help on time amid rising fury over their sluggish performance.

Just 4,200 emergency loans have been granted by banks in four weeks despite 300,000 inquiries.

The bank, with Antonio Horta-Osorio at the helm since 2011, received £20billion of public money to stop it going under

The Lloyds refusal flies in the face of the Chancellor’s own rules for the emergency loans, 80 per cent of which are underwritten by the government