ASTL calls for collaboration in letter to the Treasury
The Association of Short Term Lenders (ASTL) has delivered a letter to HM Treasury, requesting the opportunity to contribute to any discussions about future options when the current moratorium ends in June.
Section 82 of the Coronavirus Act 2020, which was passed on 25 March 2020, means no business tenant can be forced out of its premises if it misses a rent or other lease payment (including service charges and insurance rent) prior to 30 June 2020.
The act gives the government power to make future extensions of this moratorium on forfeiture beyond 30 June.
Within the letter, the ASTL said: “We believe that our members will be an important part of the solution as and when we exit this pandemic and rebuild our economy.
“Certainly, they will be called upon to provide much-needed liquidity to fund recovery and growth in the SME community as alternative and specialist providers of finance.
“With this in mind, we would like to discuss with you how the broad approach to the current moratorium affects short-term mortgage lenders and, as we move forward, how provision can be made to re-enforce the ability of our members to advance new loans and provide SMEs with the liquidity they will need to rebuild their businesses.”
Vic Jannels (pictured), CEO of the ASTL, said: “We have endeavoured to encourage HM Treasury that it really would help if we are able to engage in a collaborative approach, which would put public health first, protect homeowners and small businesses, and also acknowledge the vital role that the short-term mortgage lending community can play in the UK’s economic recovery.
“It is important that we work together on an effective and diverse financial response to the current situation in a way that protects consumers and supports businesses.”