Question to the HM Treasury:

To ask the Chancellor of the Exchequer, what progress has been made on implementing the rules governing the extension of the maximum loan term under the coronavirus business interruption loan scheme from six to 10 years.

As part of the Winter Economy Plan, the Chancellor announced a range of measures to extend and reinforce the support provided to businesses during this challenging time.

The Chancellor announced Pay as you Grow options, providing greater flexibility to help Bounce Back Loan borrowers repay their loans on the terms which work best for them. In addition, we have since extended the application deadline for the Coronavirus Business Interruption Loan Scheme, the Coronavirus Large Business Interruption Loan Scheme, the Bounce Back Loan Scheme and the Future Fund until 31 January.

The Chancellor also announced our intention to allow lenders to extend the repayment period for CBILS loans where this is needed up to 10 years. This is not a blanket extension of the term of CBILS loans. Rather, the change is to enable lenders to offer an extension of the term as forbearance where a borrower is in difficulty and could be helped by the extension. We are working to implement this change as soon as possible and will provide an update in due course.