Asked by: Lord Myners (Crossbench - Life peer)
Question to the Department for Business, Energy and Industrial Strategy:
To ask Her Majesty's Government how many loans under the (1) Bounce Back Loan Scheme, and (2) Coronavirus Business Interruption Loan Scheme, have had government guarantees removed; how many Coronavirus Business Interruption Loan Scheme accredited lenders have been involved in making such loans; what is the number and value of loans under the Coronavirus Business Interruption Loan Scheme that fell outside delegated authority; how many accredited lenders were involved; and whether they will publish the names of such lenders.
Answered by Lord Callanan - Parliamentary Under Secretary of State (Department for Energy Security and Net Zero)
All accredited lenders are subject to audit by the British Business Bank (the Bank) to ensure their compliance with scheme rules. If serious non-compliance is identified, the Bank is entitled to take remedial action. Such action might include termination of the Guarantee Agreement or withdrawal of the Guarantee.
It would not be appropriate to comment on individual cases given commercial sensitivities.
Asked by: Lord Myners (Crossbench - Life peer)
Question to the Department for Business, Energy and Industrial Strategy:
To ask Her Majesty's Government how they assessed the capacity of Greensill Capital to absorb its share of Coronavirus Business Interruption Loan losses alongside the government's guarantee.
Answered by Lord Callanan - Parliamentary Under Secretary of State (Department for Energy Security and Net Zero)
At the point of accreditation and based on the information provided, the British Business Bank considered that Greensill Capital UK met the criteria set out in the Coronavirus Business Interruption Loan Scheme (CBILS) Request for Proposals.
The criteria by which decisions were made, were set out in the CBILS Request for Proposals, as a publicly available document. Among the minimum requirements for accreditation was the ability of a lender to demonstrate that it had sufficient capital available to meet its lending forecasts.
Asked by: Lord Myners (Crossbench - Life peer)
Question to the Department for Business, Energy and Industrial Strategy:
To ask Her Majesty's Government how many accredited providers of the Coronavirus Business Interruption Loan Scheme were not regulated lenders; and whether they will publish the names of such providers.
Answered by Lord Callanan - Parliamentary Under Secretary of State (Department for Energy Security and Net Zero)
Details of lenders accredited to deliver the Coronavirus Business Interruption Loan Scheme were published on the British Business Bank’s website while the scheme was in operation.
Providing a list would incur a disproportionate cost to the Department. Each lender’s regulatory status is available on the relevant regulator’s website.
Asked by: Lord Myners (Crossbench - Life peer)
Question to the Department for Business, Energy and Industrial Strategy:
To ask Her Majesty's Government whether they will reopen the British Business Bank's investigation of loans made by Greensill Capital, including disclosure around the (1) issuing, (2) funding, and (3) distribution, of such loans; and whether any of the findings of the original investigation were known before Greensill Capital was granted accredited lender status.
Answered by Lord Callanan - Parliamentary Under Secretary of State (Department for Energy Security and Net Zero)
The investigation into Greensill Capital’s compliance with the terms of the Coronavirus Large Business Interruption Loan Scheme is currently ongoing.
Asked by: Lord Myners (Crossbench - Life peer)
Question to the Department for Business, Energy and Industrial Strategy:
To ask Her Majesty's Government whether the British Business Bank had any communication with the Rt Hon David Cameron on the decision to accredit Greensill Capital as a Coronavirus Business Interruption Loan Scheme lender; what form any communication took; whether Mr Cameron was mentioned in Grensill Capital's (1) formal application, or (2) oral discussion, around their application; and whether the British Business Bank consulted (a) Her Majesty's Treasury, (b) the Financial Conduct Authority, or (c) the Prudential Regulation Authority, on the decision to grant lender status.
Answered by Lord Callanan - Parliamentary Under Secretary of State (Department for Energy Security and Net Zero)
From our records, there is no indication that David Cameron approached the British Business Bank on behalf of Greensill Capital, and we are not aware of any such approach being made.
We cannot comment on the content of lenders’ applications to the Coronavirus Large Business Interruption Loan Scheme or Coronavirus Business Interruption Loan Scheme schemes as they are commercially sensitive.
None of HM Treasury, BEIS, the Financial Conduct Authority or the Prudential Regulation Authority had a role in the British Business Bank’s decision to accredit Greensill Capital.
Asked by: Lord Myners (Crossbench - Life peer)
Question to the Department for Business, Energy and Industrial Strategy:
To ask Her Majesty's Government when they will disclose the names of (1) borrowers, and (2) amounts borrowed, under (a) the Bounce Back Loan Scheme, and (b) the Coronavirus Business Interruption Loan Scheme.
Answered by Lord Callanan - Parliamentary Under Secretary of State (Department for Energy Security and Net Zero)
Details of facilities made available under the Bounce Back Loan Scheme and the Coronavirus Business Interruption Loan Scheme will be published where required by the European Commission’s Transparency Aid Module in due course.
Asked by: Lord Myners (Crossbench - Life peer)
Question to the Department for Business, Energy and Industrial Strategy:
To ask Her Majesty's Government, further to the Written Answer by Lord Callanan on 17 December 2020 (HL11087), what assessment they have made of whether it would now be a good use of public resources to publish the names of those firms borrowing under Coronavirus Business Interruption Loan Scheme and Bounce Back Loan Scheme.
Answered by Lord Callanan - Parliamentary Under Secretary of State (Department for Energy Security and Net Zero)
Details of facilities made available under the Coronavirus Business Interruption Loan Scheme and the Bounce Back Loan Scheme will be published where required by the European Commission’s Transparency Aid Module.
Asked by: Lord Myners (Crossbench - Life peer)
Question to the Department for Business, Energy and Industrial Strategy:
To ask Her Majesty's Government why Greensill Capital remains listed on the British Business Bank website as an accredited lender.
Answered by Lord Callanan - Parliamentary Under Secretary of State (Department for Energy Security and Net Zero)
The British Business Bank is tasked with administering the Covid-19 debt guarantee schemes to ensure compliance with its terms. The details of its compliance activity with individual lenders is a commercially sensitive matter.
While the Bank looks into Greensill’s position it is not able to originate new lending that benefits from a Government guarantee.
Asked by: Lord Myners (Crossbench - Life peer)
Question to the Department for Business, Energy and Industrial Strategy:
To ask Her Majesty's Government to which entities owned by Sanjeev Gupta did the British Business Bank extend the Coronavirus Business Interruption Loan Scheme; who was responsible for (1) credit assessment, and (2) due diligence; and from which accounts were any loans issued.
Answered by Lord Callanan - Parliamentary Under Secretary of State (Department for Energy Security and Net Zero)
We are unable to provide information relating to individual borrowers as it is commercially sensitive. However, details of facilities made available under the Coronavirus Business Interruption Loan Scheme (CBILS) will be published where required by the European Commission’s Transparency Aid Module in due course.
CBILS facilities are delivered through the British Business Bank’s accredited lenders, who are responsible for making credit decisions in accordance with the scheme’s rules.
Asked by: Lord Myners (Crossbench - Life peer)
Question to the Department for Business, Energy and Industrial Strategy:
To ask Her Majesty's Government (1) when, and (2) for what reasons, they withdrew Greensill Capital’s approval as a Coronavirus Business Interruption Loan Scheme lender.
Answered by Lord Callanan - Parliamentary Under Secretary of State (Department for Energy Security and Net Zero)
The British Business Bank is tasked with administering the Coronavirus Business Interruption Loan Scheme (CBILS) to ensure compliance with its terms. The details of its compliance activity with individual lenders is a commercially sensitive matter.
While the Bank looks into Greensill’s position, it is not able to originate new lending that benefits from a Government guarantee.