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

To ask the Secretary of State for Business, Energy and Industrial Strategy, what recent assessment his Department made of the suitability of Greensill Capital to become an accredited lender under the Coronavirus Large Business Interruption Loan Scheme.

Greensill Capital were approved by the British Business Bank (Bank) in June last year to provide finance through the Coronavirus Large Business Interruption Loan Scheme (CLBILS), based on criteria set out in the CLBILS “Request for Proposals”.

The Department for Business, Energy and Industrial Strategy had no role in the Bank’s decision to accredit Greensill Capital. All decisions taken by the Bank were made independently and in accordance with the Bank’s usual procedures.

All accredited lenders are subject to audit by the Bank to ensure their compliance with scheme rules. If serious non-compliance is identified, the Bank is entitled to take remedial action. Such action might include termination of the guarantee agreement or withdrawal of the guarantee.

While the Bank looks into Greensill’s position it is not able to originate new lending that benefits from a Government guarantee.