Question to the Department for Business, Energy and Industrial Strategy:

To ask the Secretary of State for Business, Energy and Industrial Strategy, what steps the Government takes to help explain why a company may have been unsuccessful in a bid for a Covid Recovery Loan.

The Recovery Loan Scheme (RLS) is delivered by the British Business Bank (BBB) through a network of accredited lenders. The scheme is open to small and medium sized businesses that:

• Have a turnover not exceeding £45 million per annum
• Have been impacted by Covid-19
• Are carrying out trading activity in the UK
• Would be viable if not for the pandemic
• Are not in collective insolvency proceedings

Further information on who is eligible for the scheme can be found on the BBB’s website: https://www.british-business-bank.co.uk/ourpartners/recovery-loan-scheme/for-businesses/.

Decision-making on whether a company is eligible for RLS and whether it is suitable for them is fully delegated to the accredited lenders. Prospective borrowers do not need to use a broker to access the scheme and are able to apply to lenders directly, subject to each lender’s internal processes. Where a company has applied for an RLS facility and been unsuccessful, the lender is responsible for explaining why the company’s application was declined.