To ask the Chancellor of the Exchequer, what assessment he has made of the viability of deferring Coronavirus Business Interruption Loan Scheme repayments in the context of the introduction of additional public health restrictions in the covid-19 lockdown announced in January 2021.
CBILS capital repayments for businesses start immediately unlike the Bounce Back Loan Scheme (BBLS) where no repayments are due from the business during the first 12 months of the facility. CBILS borrowers have benefitted from the Business Interruption Payment with the Government covering their interest payments for the first 12 months of borrowing to provide additional support at this difficult time.
Any business concerned about their ability to repay their finance should discuss this with their lender in the first instance. Given loans under CBILS are varied and resemble more traditional commercial lending, CBILS borrowers are more likely to benefit from tailored engagement with their lender if they have concerns about repayments. Lenders have an ongoing relationship with CBILS borrowers and will be best placed to provide support tailored to an individual businesses circumstance.
The Government has amended the CBILS rules to allow lenders to extend loan terms from six to a maximum of ten years where they judge that this will help borrowers repay their loan, helping them to reduce their monthly repayments.