Question to the Department for Business, Energy and Industrial Strategy:
To ask the Secretary of State for Business, Energy and Industrial Strategy, what guidance his Department has issued to lenders on the reasons for rejecting applications for a loan under the Coronavirus Business Interruption Loan Scheme.
The British Business Bank has issued guidance to all accredited lenders on assessing eligibility for the Coronavirus Business Interruption Loan Scheme (CBILS).
You are eligible for the scheme if:
For facilities above £30k, lenders are required to gain comfort that a SME is not an ‘Undertaking in Difficulty’, but this includes the option for lenders to rely on self-certification.
Decision-making on whether a business is eligible to access the CBILS is fully delegated to accredited lenders, using the guidance above, and individual lending decisions remain at the discretion of these lenders.
The Secretary of State continues to hold a regular dialogue with each of the biggest CBILS lenders to monitor its implementation and ensure that companies receive the full benefits of the support being provided.
The new Bounce Back Loans Scheme launched on May 4 to help the smallest SMEs to access loans from £2000 up to 25% of a business’ turnover, with maximum loan amount of £50,000. To apply for the scheme businesses will be able to complete a short, simple, online application form, meaning that applications can be submitted and processed rapidly and businesses can access loans within a matter of days. The Government will provide lenders with a 100% guarantee on each loan to give them the confidence they need to support the smallest businesses in the country.