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

To ask Her Majesty's Government what assessment they have made of whether some banks are requiring companies to freeze all loans and leasing with other financing institutions before agreeing loans under the Coronavirus Business Interruption Loan Scheme; and whether they consider such conditions are appropriate in the context of an 80 per cent guarantee from them.

Since the launch of the Coronavirus Business Interruption Loan Scheme (CBILS), the Government has worked closely with the financial services sector to ensure that companies receive the full benefits from this support.

Accredited lenders are responsible for providing loans under the CBILS. Lending decisions on whether a business is eligible to access the CBILS are fully delegated to the accredited lenders, and individual lending decisions remain at the discretion of these lenders.

My Rt hon Friend the Secretary of State continues to work with banks and other finance providers to help SMEs access the finance they need and has discussed with these organisations the alternative forms of support for businesses that they are offering. The Government welcomed the statement by UK Finance on behalf of the financial sector which announced that banks, building societies and credit card providers are committed to supporting their business customers in continuing to trade.