NatWest and RBS launch emergency loan fund to help storm-struck hospitality businesses

NatWest and RBS have launched a £250m interest free loan fund to help out hospitality businesses who have been affected by the recent floods and strong winds. 

A number of owners of hotels, restaurants and pubs were among those whose livelihoods were affected when floods and gales swept the country in December. 

Reeds Country House Hotel in Lincolnshire was forced to close for good on 18 December after it became unable to recover financially from flood damage and others like the Mercure Box Hill, Burford Bridge in Dorking remain closed while work is done to make repairs. 

NatWest and RBS said the £250m UK Storm Business Fund is designed to provide short-term, interest free financing to help make recovery swift for those businesses affected by the bad weather.

Loans, interest-free for three months and available to all viable businesses, not just existing NatWest or RBS customers, will be granted to cover the cost of repairs and replacement stock to enable businesses to return to normal trading. 

Andrew Taylor, head of leisure for commercial banking at NatWest and RBS, said: "As the UK's biggest business bank we know cash flow is critical for businesses. Many leisure businesses will have taken a real hit to their livelihoods as a result of this prolonged period of adverse weather."

In addition to the UK Storm Business Fund, the banks are offering a number of emergency measures for customers, including temporary credit card increases, repayment holidays on existing small business loans and fast-track requests for temporary overdraft increases. 

"The loss of trade or damage to stock from such a storm can mean businesses find themselves in financial trouble. We’re making additional support available because we know how important it is to the local economy and communities to get these businesses operational again," added Taylor. 

Affected businesses should contact their relationship manager or call the UK Storms helpline on 0800 529 8544 for details.