Question to the HM Treasury:

To ask the Chancellor of the Exchequer, if he will take steps to support businesses who were unable to access bounce back loans because (a) they did not have a business bank account open before July 2020 or (b) banks were refusing new applicants before the deadline.

On September 24 the Chancellor launched the Winter Economy Plan. As part of this, he announced the Government is extending the four temporary loan schemes which have helped over a million businesses to date, to 30th November 2020 for new applications. This includes including the Bounce Back loans Scheme (BBLS). This extension means that even more businesses will be able to benefit from the schemes, which have supported over a 1.2million businesses to date.

Furthermore, the Government will continue working with lenders and business representatives to introduce a new, successor loan guarantee scheme, set to begin in January.

Some banks have made good on their intention to invite applications from new customers, and many of those that are still only open to existing customers are regularly reviewing that position. The Government have always made clear to lenders that they should open to new customers as soon as it is operationally possible for them to do so. Lenders are fully aware of the current urgency, so we would expect them to respond appropriately to their customers’ needs.