Covid-19: Business Interruption Loans

Lord Stevenson of Balmacara Excerpts

Wednesday 22nd April 2020 Lords Chamber

[Lord Callanan]

I thank my noble friend for his question. Of course, the issue of 100% guarantees has been raised by a number of other contributors. It is something that we are keeping under review. However, we think that the structure of the scheme at the moment is appropriate to its function. We do not believe that it is right to put all the cost of these loans directly on to taxpayers. Banks should have some involvement in those loans. As I say, we are keeping the scheme under review.

[Lord Stevenson of Balmacara (Lab)]

My Lords, the Government are to be congratulated on the scale of—and, indeed, the welcome adaptations to be made to—the CBILS, but other countries seem to be disbursing more money more quickly to their struggling SMEs. In addition to the point made already about the increase needed to guarantee 100% of loans, will the Government also think of insisting, in the interests of transparency, that the British Business Bank provide details of what loans have been delivered by the 47 accredited lenders?

[Lord Callanan]

It is important to remember that not all SMEs will want debt finance. There is a wide range of different support schemes available to businesses, including the job retention scheme and various local authority grants. We will be looking to publish, in the interests of transparency, the full range of offers that have been made to business in due course.