To ask the Secretary of State for Business, Energy and Industrial Strategy, what steps his Department is taking to ensure that banks are providing fair advice in the interests of small businesses on whether they should apply for financial support through the (a) Coronavirus Business Interruption Loan Scheme or (b) Bounce Back Loan Scheme.
Accredited lenders are responsible for providing loans under the Coronavirus Business Interruption Loan Scheme (CBILS) and the Bounce Back Loan Scheme (BBLS). Businesses should approach accredited lenders in the first instance, providing information about the type and amount of finance they need to access. The lender will determine the right type of finance for a business’s needs. A full list of accredited lenders can be found on the British Business Bank website.
The Coronavirus Business Interruption Loan Scheme (CBILS) allows business with a turnover of less than £45 million to access working capital (including loans, overdrafts, invoice finance and asset finance) of up to £5 million for up to six years.
The Bounce Back Loan Scheme helps small and medium-sized businesses to borrow between £2,000 and up to 25% of their turnover. The maximum loan available is £50,000.
Decision-making on whether a business is eligible to access the CBILS or the BBLS is fully delegated to the accredited lenders, and individual lending decisions remain at the discretion of these lenders.
The Government continues to work closely with lenders to help SMEs access the finance they need.