Only a few days to go: We’re raising £25,000 to keep TheyWorkForYou running and make sure people across the UK can hold their elected representatives to account.

Donate to our crowdfunder

Bounce Back Loan Scheme and Coronavirus Business Interruption Loan Scheme

Department for Business, Energy and Industrial Strategy written question – answered on 22nd May 2020.

Alert me about debates like this

Photo of Preet Kaur Gill Preet Kaur Gill Shadow Secretary of State for International Development

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.

Photo of Paul Scully Paul Scully Parliamentary Under-Secretary (Department for Business, Energy and Industrial Strategy), Minister of State (London)

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.

Full details of both the Coronavirus Business Interruption Loan Scheme (CBILS) and the Bounce Back Loan Scheme (BBLS) can be found on GOV.UK and the British Business Bank websites.

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.

Does this answer the above question?

Yes1 person thinks so

No0 people think not

Would you like to ask a question like this yourself? Use our Freedom of Information site.