Question to the Department for Business, Energy and Industrial Strategy:

To ask the Secretary of State for Business, Energy and Industrial Strategy, how much interest the Government has paid to banks for (a) bounce back loans and (b) Coronavirus Business Interruption Loan Scheme (CBILS); and how much banks have charged the Government for arranging CBILs loans.

The Government covers interest payments on behalf of borrowers for the Bounce Back Loan Scheme (BBLS) and the Coronavirus Business Interruption Loan Scheme (CBILS) for the first 12 months after drawdown of a facility. For CBILS, interest rates and fees will vary between banks and will depend on the specific lending proposal. The interest rate for Bounce Back loans is set at 2.5%.

As of 28 January 2021, the total value of interest payments made for both schemes is as follows:

• Total amount recorded for interest paid to Banks under BBLS: £193,269,778
• Total amount recorded for interest paid to Banks under CBILS: £81,991,145

For CBILS, the Government also covers arrangement fees on behalf of borrowers.

As of 28 January 2021, the total amount recorded for arrangement fees paid to banks is £24,256,440.

Banks are not permitted to charge any fees for administering BBLS.