Covid-19: Business Interruption Loans Debate
Full Debate: Read Full DebateBaroness Blackwood of North Oxford
Main Page: Baroness Blackwood of North Oxford (Conservative - Life peer)Department Debates - View all Baroness Blackwood of North Oxford's debates with the Department for Business, Energy and Industrial Strategy
(4 years, 4 months ago)
Lords ChamberWe are aware of the issue that the noble Baroness raises. Typical insurance policies offer cover against business interruption due to specific or notifiable diseases listed in the policy. An optional extension was available in many policies to cover pandemics, but unfortunately the majority of businesses did not choose to take up that option. We do not believe that it is right or feasible to require insurers to pay out retrospectively against a risk that was not covered in their original policy, but there are a number of other support packages available to those businesses at this difficult time.
I welcome the match funding which has been made available to our most innovative start-ups through the Future Fund, but can the Minister clarify how the scheme is going to operate? For example, will companies have a reasonable veto over to whom these loans could be sold on? Investors and executives will have an eye on their cap table, and will private investor capital lent alongside the Government funding qualify for EIS relief?
My noble friend asked two good questions. We are aware of her first point about vetoes, and are considering it closely as we work out the further details of the scheme. As regards her second point, private investor capital lent alongside the government capital will not qualify for EIS relief.