Covid-19: British Business Bank Debate
Full Debate: Read Full DebateDepartment: Department for Business, Energy and Industrial Strategy
Baroness Altmann
Main Page: Baroness Altmann (Conservative - Life peer)Department Debates - View all Baroness Altmann's debates with the Department for Business, Energy and Industrial Strategy
(4Â years ago)
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Lord Callanan
My noble friend makes a very good point—fintech has a significant role to play. Funding Circle, as he will be aware, was recently added as a CBILS accredited lender. Along with other alternative finance providers, it will help even more businesses to access the finance they need at this difficult time.
Baroness Altmann (Con)
Will my noble friend comment on the interest rate charged on the loans and say whether there is a cap on that rate? Are penalties allowed for early repayment, which would obviously be detrimental to the future of firms? Also, following on from the suggestion made by my noble friend Lord Leigh of Hurley, is there any intention to help firms by providing finance for equity investment rather than debt only?
Lord Callanan
The business interruption payment means that the borrower benefits from no fees or interest in the first 12 months. Interest rates are then charged at the discretion of each lender. However, under the terms of the state aid agreement, the Government fully expect that the benefits of the guarantee under CBILS is reflected in the interest charged by the lender both during the period of the business interruption payment and thereafter, for the remainder of the facility.