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

To ask the Secretary of State for Business, Energy and Industrial Strategy, what steps the Government is taking to support businesses that have become heavily indebted during the covid-19 outbreak.

The Government has provided an unprecedented business support package totalling over £280 billion. This includes billions in loans, grants, and business rates relief. As of 21 February 2021, businesses across the UK have benefitted from over 1.5 million Government-guaranteed loans worth over £72 billion to support their cashflow through the pandemic.

We recognise that some borrowers will benefit from repayment flexibility, that is why we announced the Pay As You Grow measures, which give Bounce Back Loan borrowers more time and greater flexibility to repay their loans.

We have also enabled lenders to extend the repayment period for Coronavirus Business Interruption Loan Scheme (CBILS) facilities beyond 6 years (up to a maximum of 10 years), where this is needed in connection with the provision of forbearance. CBILS term extensions are offered at the discretion of lenders. This measure is designed to help businesses that would struggle to repay their CBILS facility on their existing terms, by reducing monthly repayments.

Grant funding has also been made available via Local Authorities to help businesses forced to close due to national and localised restrictions, and for businesses severely impacted by restrictions even if not required to close. This includes the Closed Businesses Lockdown Payment (CBLP), the Additional Restrictions Grant (ARG), and the Local Restrictions Support Grant (LRSG) schemes.

Businesses can also access tailored advice through the Business Support Helpline, online via the Business Support website or through local Growth Hubs in England.