Bounce Back Loan Scheme

(asked on 8th December 2020) - View Source

Question to the HM Treasury:

To ask the Chancellor of the Exchequer, what discussions he has had with representatives of the financial sector on allowing non-banks to access direct funding for the Bounce Back Loan Scheme, as is available to high street banks.


Answered by
John Glen Portrait
John Glen
Paymaster General and Minister for the Cabinet Office
This question was answered on 14th December 2020

The Government launched the Bounce Back Loan Scheme (BBLS) to ensure that the smallest businesses could access loans of up to £50,000 in a matter of just days. As of 15 November, the scheme had supported nearly 1.4 million businesses with facilities totaling over £42 billion.

The British Business Bank has so far accredited 29 lenders for BBLS, including several challenger banks and non-bank lenders.

The Treasury recognises the vital role that non-banks and challenger banks play in the provision of credit to SMEs. It is grateful for the way the sector has responded to the current crisis, and remains committed to promoting competition, and widening the funding options available to UK businesses.

The Government does not provide funding to lenders who are participating in the government loan schemes; lenders must source their own funding, as they do for standard business lending.

We have made changes to allow the transfer and assignment of the Government guarantee for all government-guaranteed loan schemes loans, which is something that NBLs have requested, to support their ability to access funding. We will continue to work with non-bank lenders to support their participation in the loan schemes.

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