Coronavirus Business Interruption Loan Scheme

(asked on 30th April 2020) - View Source

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

To ask Her Majesty's Government whether, under the Coronavirus Business Interruption Loan Scheme, any conditionality by the lender is permitted for the bounce back micro-loans; and whether that funding is automatic following ticks on an application form.


Answered by
Lord Callanan Portrait
Lord Callanan
Parliamentary Under Secretary of State (Department for Energy Security and Net Zero)
This question was answered on 15th May 2020

The Bounce Back Loan Scheme has been designed to enable businesses to access finance quickly. Businesses are required to complete an online application form, which is expected to be assessed by their lender within a matter of days. In some instances, the lender may ask a business for additional information, such as an HMRC self-assessment tax return to verify its status as a business.

Businesses from all sectors can apply for a facility. The business must self-certify to its lender the following:

  • Confirm it is UK-based in its business activity, and established by 1 March 2020;
  • Confirm it has been adversely impacted by the Coronavirus (COVID-19);
  • Confirm it is not currently using a government-backed Coronavirus loan scheme (unless using BBLS to refinance a whole facility); and
  • Confirm it is not in bankruptcy, liquidation or undergoing debt restructuring.
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