Question to the HM Treasury:

To ask the Chancellor of the Exchequer, what recent discussions he has had with major banks on support for small businesses during the covid-19 outbreak.

Treasury Ministers and officials have meetings with a wide variety of organisations in the public and private sectors as part of the process of policy development and delivery.

Details of ministerial and permanent secretary meetings with external organisations on departmental business are published on a quarterly basis and are available at: https://www.gov.uk/government/collections/hmt-ministers-meetings-hospitality-gifts-and-overseas-travel

The Treasury recognises the vital role that major banks, 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 crisis, providing a range of commercial support to their customers and participating in the coronavirus guarantee loan schemes.

On 23 March 2020, the Coronavirus Business Interruption Loan Scheme (CBILS) was launched to support small and medium sized businesses’ access to lending, with viable businesses eligible to apply for loans of up to £5m. Furthermore, on 4 May 2020, the Government launched the Bounce Back Loan Scheme (BBLS) which ensures that the smallest businesses can access loans from £2,000 up to £50,000, capped at 25% of businesses' turnover in a matter of just days.

The British Business Bank has so far accredited 29 BBLS lenders, including challenger banks and non-bank lenders, and more than 100 CBILS lenders. Together, as of 13 December, the schemes have supported more than 1.5 million businesses with facilities totalling over £63 billion.

In order to give the smallest businesses further support and flexibility in making their repayments for BBLS, the Chancellor has announced “Pay as You Grow” (PAYG) options. Furthermore, the Government has amended the CBILS rules to allow lenders to extend loan terms from six to a maximum of ten years where they judge that this will help borrowers repay their loan, helping them to reduce their monthly repayments.

Banks are also providing a range of commercial support to their customers. Businesses struggling to repay any pre-existing loans should talk to their lender to discuss options.