Coronavirus Business Interruption Loan Scheme

(asked on 29th April 2020) - View Source

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

To ask the Secretary of State for Business, Energy and Industrial Strategy, whether he plans to take steps to end the consideration by lenders of a business’s historic losses when conducting forward credit checks to assess Coronavirus Business Interruption Loan Scheme applications.


Answered by
Paul Scully Portrait
Paul Scully
This question was answered on 6th May 2020

A business is eligible for a loan under the Coronavirus Business Interruption Loan Scheme if:

  • Its business’s activity is UK-based, with turnover of no more than £45 million per year;
  • It has a borrowing proposal which, were it not for the current pandemic, would be considered viable by the lender;
  • It can self-certify that the business has been adversely impacted by the Coronavirus (Covid-19).

Government has removed the forward-looking viability test that required an assessment of whether the business can trade out of the crisis. The only test that remains is whether a business was viable before Covid-19.

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