Business: Loans

Treasury written question – answered on 28th April 2020.

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Photo of Claire Hanna Claire Hanna Social Democratic and Labour Party, Belfast South

To ask the Chancellor of the Exchequer, whether he plans to take steps to protect businesses from high interest rate loans offered to them by banks that wish to avoid using the Coronavirus Business Interruption Loan Scheme during the covid-19 outbreak.

Photo of John Glen John Glen Minister of State (Treasury) (City), The Economic Secretary to the Treasury

The government has set out an unprecedented package of support for all businesses affected by this crisis, including the Coronavirus Business Interruption Loan Scheme.

On 3 April, the Chancellor extended the eligibility of the scheme so that all viable small businesses affected by Covid-19, and not just those viable businesses unable to secure regular commercial financing, are now eligible if the lender believes they will need finance to see them through these unprecedented times. This exceptional support is designed to enable all long-term viable businesses experiencing difficulties as a result of the coronavirus outbreak to access finance, if external finance is the right answer.

All individual lending decisions, whether under CBILS or outside of this, remain at the discretion of lenders.

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