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

To ask the Secretary of State for Business, Energy and Industrial Strategy, pursuant to the Answer of 13 July 2020 to Question 70388 on Companies: Coronavirus, what steps the Government plans to take to monitor whether companies borrowing through the Coronavirus Large Business Interruption Scheme are (a) engaged in trading activity in the UK at the Initial Drawdown Date and (b) using that finance facility to support their trading activity in the UK.

The Coronavirus Large Business Interruption Scheme (CLBILS) guidance makes it clear that the British Business Bank is not responsible for monitoring or verifying the use of any money advanced by accredited lenders to borrowers.

It is the lenders responsibility to ensure that CLBILS facilities comply with the CLBILS eligibility criteria, which include (amongst others):

• That the relevant Applicant or Applicant’s Group is or will be engaged in Trading Activity in the United Kingdom at the Initial Drawdown Date
• That the Proposed Scheme Facility will be used for an Eligible Purpose (which may include the refinancing of an existing Borrowing Facility used for an Eligible Purpose) and to support trading in the United Kingdom.

If the facility was not eligible at the offer date then the lender would not be able to claim against the guarantee. The British Business Bank retains the rights to request information from accredited lenders in order to verify whether a facility was eligible on the offer date.

Lenders undergo a review to test a sample of CLBILS facilities to ensure that processes are being followed in accordance with the agreement.