Coronavirus Business Interruption Loan Scheme

Lord Razzall Excerpts

Tuesday 12th May 2020 Lords Chamber

Asked by

[Lord Razzall]

To ask Her Majesty’s Government what assessment they have made of the operation of the Coronavirus Business Interruption Loan Scheme for small- and medium-sized businesses.

The Question was considered in a Virtual Proceeding via video call.

--- Later in debate ---

[Lord Razzall (LD)]

Does the Minister accept that, although the number of loans is quite large, the number of SMEs receiving them as a proportion of the whole is relatively small? Is he concerned that, under the two existing schemes, banks are primarily lending only to people to whom they would have lent anyway in normal times? This is particularly hitting the hospitality and retail sectors.

[Lord Callanan]

The noble Lord is right that only a relatively small proportion of the total number of SMEs have applied for or received loans. However, it is important to remember that not all businesses want loans, and of course other government support schemes are also available to help them through the crisis.