Question to the Department for Business, Energy and Industrial Strategy:
To ask the Secretary of State for Business, Energy and Industrial Strategy, whether statutory protections from changes to interest rates are available to recipients of the Coronavirus Business Loan Interruption Scheme.
Under the terms of the Coronavirus Business Interruption Loan Scheme (CBILS), interest rates do not change once agreed between the lender and borrower at the beginning of the term.
Lenders undergo periodic audits to check that scheme eligibility rules and processes are being followed. If it is determined that a lender is not passing on the economic benefits of the CBILS Guarantee to borrowers, the lender will be obligated to take such action as is required by the British Business Bank to rectify this.