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Treasury written question – answered on 19th May 2020.

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Photo of Sharon Hodgson Sharon Hodgson Shadow Minister (Defence)

To ask the Chancellor of the Exchequer, what financial support he is providing to Peer2Peer lending platforms.

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

The Government monitors the peer-to-peer (P2P) lending sector on an ongoing basis and engages regularly with P2P platforms and the Financial Conduct Authority (FCA), who are responsible for the regulation of the sector.

The Government believes that P2P providers deliver innovative forms of finance for both consumers and business, and can provide healthy competition in the financial services market and, as such, is keen to see the sector continue to grow and evolve.

P2P platforms are eligible to access finance under the Coronavirus Business Interruption Loan Scheme (CBILS) and Coronavirus Large Business Interruption Loan Scheme (CLBILS), where they can access loans up to £50 million under the latter, depending on the size of the platform. Under CLBILS, borrowers can apply for finance facilities, including overdrafts, of up to £25 million for businesses with a turnover between £45 million and £250 million, and up to £50 million to businesses with a turnover of over £250 million.

Those P2P platforms that facilitate loans to businesses can also apply to become accredited lenders under these schemes. More information on eligibility criteria and registering to become an accredited lender, can be found on the British Business Bank’s website here: https://www.british-business-bank.co.uk/ourpartners/coronavirus-business-interruption-loan-scheme-cbils-2/become-a-cbils-accredited-lender/

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