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

To ask Her Majesty's Government what the interest rates will be for businesses who have been supported via a Coronavirus Business Interruption Loan, following the end of the 12-month zero-interest rate period of that scheme; and what plans they have to ensure that such rates stay below 6 per cent.

Interest rates charged under the Coronavirus Business Interruption Loan Scheme (CBILS) are set at the discretion of each lender. The UK Government expects that the benefit of the guarantee under the CBILS Scheme is reflected in the interest that is charged on the CBILS Facility. This expectation is re-enforced by the State Aid rules that also require this.

The Government held discussions with the banking industry prior to the launch of CBILS and the Business Secretary continues to hold regular calls with each of the biggest CBILS lenders to address feedback on how the scheme has been working and closely monitor its implementation to ensure that companies feel the full benefits of this support.

CBILS lenders have agreed that no early repayment charges will be levied should a borrower choose to repay their CBILS facility earlier than planned.