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

To ask Her Majesty's Government what assessment they have made of whether it is appropriate for banks to make discretionary charges for any personal contact for the arrangement of coronavirus business loans; and whether there are any conditions on the fees that are covered under the scheme.

Under the Coronavirus Business Interruption Loan Scheme (CBILS) the Government will make a payment to cover the first 12 months of interest payments and any facility arrangement fees charged by lenders, so businesses will benefit from lower upfront costs and initial repayments.

The exact terms of each loan under the CBILS are delegated to the 50+ accredited lenders and will vary from lender to lender. However, the Government expects that the benefit of the guarantee under the CBILS is fully 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.

If businesses are worried about the specific terms of finance facilities available under this scheme, they should speak to their usual lender.

My Rt hon Friend the Secretary of State continues to hold a dialogue with all major CBILS lenders to monitor the implementation of the scheme.