Asked by: Angela Eagle (Labour - Wallasey)
Question to the Department for Business, Energy and Industrial Strategy:
To ask the Secretary of State for Business, Energy and Industrial Strategy, pursuant to the Answer of 13 March 2021 to Question 174728, on GFG Alliance: Coronavirus Business Interruption Loan Scheme, when he plans to publish details of the Coronavirus Large Business Interruption Loan Scheme where required by the European Commission’s Transparency Aid Module.
Answered by Paul Scully
Details of facilities made available under the Coronavirus Business Interruption Loan Scheme will be published where required by the European Commission’s Transparency Aid Module in due course.
Our priority is to ensure borrowers are given notice before information about their loans is shared with the European Commission; we are working with lenders and the British Business Bank to facilitate this. A rolling programme of reporting will then publish details of aid granted within the preceding 12 months.
More information is available at https://www.british-business-bank.co.uk/ourpartners/coronavirus-business-interruption-loan-schemes/data-reporting/.
Asked by: Angela Eagle (Labour - Wallasey)
Question to the Department for Business, Energy and Industrial Strategy:
To ask the Secretary of State for Business, Energy and Industrial Strategy, whether (a) his Department and (b) officials at the British Business Bank had discussions with the Bank of England on the decision to give Greensill Capital accredited lender status for the Coronavirus Large Business Interruption Loan Scheme.
Answered by Paul Scully
The Department for Business, Energy and Industrial Strategy and the Bank of England had no role in the British Business Bank’s decision to accredit Greensill Capital.
All decisions taken by the British Business Bank were made independently and in accordance with the Bank’s usual procedures.
Asked by: Angela Eagle (Labour - Wallasey)
Question to the Department for Business, Energy and Industrial Strategy:
To ask the Secretary of State for Business, Energy and Industrial Strategy, whether he had any discussions with the Chancellor of the Exchequer, or Treasury Ministers or officials on the British Business Bank's decision to grant Greensill Capital access to the Coronavirus Large Business Interruption Loan Scheme.
Answered by Paul Scully
The British Business Bank (Bank) accredited Greensill Capital to offer finance via the Coronavirus Large Business Interruptions Loan Scheme.
All decisions taken by the Bank were made independently and in accordance with the Bank’s usual procedures. The then Secretary of State had no discussions with either a) the Chancellor of the Exchequer, b) Treasury Ministers or c) Treasury officials about the Bank’s decision.
Asked by: Angela Eagle (Labour - Wallasey)
Question to the Department for Business, Energy and Industrial Strategy:
To ask the Secretary of State for Business, Energy and Industrial Strategy, for what reason the British Business Bank has accelerated accreditation for some existing lenders; and what steps his Department is taking to prevent fraudulent applications for such accreditation.
Answered by Paul Scully
The Recovery Loan Scheme ensures businesses of any size can continue to access finance they need once the existing Covid-19 loan schemes close.
All lenders will be subject to an assessment of their proposals, and subject to usual British Business Bank governance around approvals. Existing accredited Coronavirus Business Interruption Loan Scheme lenders have been invited to apply for accreditation. An accelerated process, for some of these lenders, will ensure that a broad range of lenders is in place to offer facilities as soon as possible.
Asked by: Angela Eagle (Labour - Wallasey)
Question to the Department for Business, Energy and Industrial Strategy:
To ask the Secretary of State for Business, Energy and Industrial Strategy, what recent assessment his Department made of the suitability of Greensill Capital to become an accredited lender under the Coronavirus Large Business Interruption Loan Scheme.
Answered by Paul Scully
Greensill Capital were approved by the British Business Bank (Bank) in June last year to provide finance through the Coronavirus Large Business Interruption Loan Scheme (CLBILS), based on criteria set out in the CLBILS “Request for Proposals”.
The Department for Business, Energy and Industrial Strategy had no role in the Bank’s decision to accredit Greensill Capital. All decisions taken by the Bank were made independently and in accordance with the Bank’s usual procedures.
All accredited lenders are subject to audit by the Bank to ensure their compliance with scheme rules. If serious non-compliance is identified, the Bank is entitled to take remedial action. Such action might include termination of the guarantee agreement or withdrawal of the guarantee.
While the Bank looks into Greensill’s position it is not able to originate new lending that benefits from a Government guarantee.
Asked by: Angela Eagle (Labour - Wallasey)
Question to the Department for Business, Energy and Industrial Strategy:
To ask the Secretary of State for Business, Energy and Industrial Strategy, how many lenders have had their Government guarantee on loans made under the (a) Coronavirus Large Business Interruption Loan Scheme and (b) Coronavirus Business Interruption Loan Scheme removed; and what the reasons are for that removal.
Answered by Paul Scully
All accredited lenders are subject to audit by the British Business Bank to ensure their compliance with scheme rules. If serious non-compliance is identified, the Bank is entitled to take remedial action. Such action might include termination of the Guarantee Agreement, or withdrawal of the Guarantee.
It would not be appropriate to comment on individual cases given commercial sensitivities.
Asked by: Angela Eagle (Labour - Wallasey)
Question to the Department for Business, Energy and Industrial Strategy:
To ask the Secretary of State for Business, Energy and Industrial Strategy, whether his Department received advice from (a) banks and (b) specialist advisors on identifying fraudulent applications for (i) bounce back loans and (ii) coronavirus business interruption loans.
Answered by Paul Scully
The Department continues to work with other Government Departments, lenders, and law enforcement agencies to tackle fraudulent abuse of the schemes.