RISHI Sunak has been urged to intervene in the coronavirus Bounce Back Loan Scheme to make sure it works for charities as well as businesses.

East Lothian MP Kenny MacAskill has written to the Chancellor after Fringe by the Sea, a not-for-profit organisation in his constituency, was denied a loan under the scheme from Lloyds TSB because they don’t offer bounce back loans to “charities, clubs or societies”.

That’s despite UK Government guidance stating that charities should be covered.

MacAskill said: “The Chancellor must take action to stop this immediately so charities can access the same available support as businesses.

“I would also urge banks who are working on this basis to rethink their position – this is a time when charities will prove particularly vital for communities with many people falling on hard times because of the coronavirus pandemic.”

MacAskill has also written to TSB asking them to reconsider their position.

But he admits in his letter to the Chancellor that he thinks it unlikely they will act without government action.

The SNP MP wrote: “The promises of the Bounce Back Loan Scheme introduced are being broken by your department allowing banks to refuse to issue credit to third sector organisations.

“You must take action to stop this immediately so charities can access the same available support as businesses.”

Currently, 18 banks are signed up the scheme, which is intended to target small and micro businesses in all sectors with loans from £2000 up to 25% of the business’ turnover with a maximum loan of £50,000.

A HM Treasury spokeswoman said all loan approvals were a decision for lenders.

She added: “We have provided an unprecedented package of support for businesses, including over £40 billion in loans and guarantees, cash grants to three quarters of a million firms and paying the wages of 8.4 million furloughed workers.

“We have worked closely with lenders to design a scheme that rapidly gets loans out to small businesses – including clubs, societies and charities that meet the eligibility criteria. Latest figures show more than 600,000 Bounce Back Loans worth over £18.4bn have been made to small businesses and organisations in just three weeks.”

North Berwick’s Fringe by the Sea was forced to cancel because of the global pandemic.

Basement Jaxx and hit singer Candi Staton had already been announced for the festival, due to the take place in the seaside town in August. Jackie Shuttleworth, from the festival, said: "The health and safety of all those involved in the event is, as always, our top priority.”