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

To ask the Secretary of State for Business, Energy and Industrial Strategy, if he will review the Business in difficulty criteria of the Coronavirus Business Interruption Loan Scheme to support smaller businesses.

Although the UK has left the EU, under the terms of the Withdrawal Agreement, the EU State Aid rules continue to apply in the UK until the end of the Transition Period. The EU Commission have introduced a ‘temporary framework’ providing flexibility on State Aid rules to support businesses impacted by the Covid-19 outbreak. The Government has notified the European Commission of the Coronavirus Business Interruption Loan Scheme (CBILS) under the temporary framework, in line with State Aid rules.

Certain State Aid rules apply to businesses accessing the CBILS, including around the business in difficulty criteria. In recognition of the impact of Coronavirus, companies that do not pass the business in difficulty test are eligible for the CBILS, unless they were in difficulty on 31 December 2019, prior to the outbreak.