Question to the Department for Business, Energy and Industrial Strategy:
To ask the Secretary of State for Business, Energy and Industrial Strategy, for what reasons limited companies that have been trading for more than three years are excluded from the Bounce Back Loan Scheme on the grounds that their last annual accounts showed a loss greater than half of their share capital.
It is not the case that limited companies that have been trading for more than three years, whose last annual accounts showed a loss greater than half of their share capital, are necessarily excluded from the Bounce Back Loan Scheme.
The scheme is open to most businesses, regardless of turnover, who meet the eligibility criteria and who were established on or before 1 March 2020.
As part of the application form, borrowers are required to declare either that the business was not a business in difficulty on 31 December 2019; or if it was a business in difficulty [on 31 December 2019], that the business does not breach de minimis State aid restrictions. A business in difficulty is also required to declare it does not meet the temporary framework aid limits.
A business is considered in difficulty if it met any one of the following criteria on 31 December 2019: