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

To ask the Secretary of State for Business, Energy and Industrial Strategy, if the British Business Bank will lower its interest rates to help support businesses to expand as the economy reopens and covid-19 lockdown restrictions are eased.

The Business Interruption loan schemes are delivered by the British Business Bank through accredited lenders. Individual lending decisions are at the discretion of these lenders. The accreditation agreement makes clear that the interest rate at which the?lender is prepared to lend at, and any associated fees, should be based on a?lender’s normal pricing framework.

For the Coronavirus Business Interruption Loan Scheme (CBILS) and the Bounce Back Loan Scheme (BBLS), the Government pays the interest and any lender-levied fees in the first 12 months. For BBLS the interest rate is set at 2.5% per annum.