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 has he made of the impact of repayment arrangements for Coronavirus Business Interruption Loan Scheme debt on businesses.

Many businesses have already begun paying off their Coronavirus Business Interruption Loan Scheme (CBILS) facility. While the Government covers the interest due on CBILS loans for the first twelve months of the loan, repayments of capital are required during this period unless the lender chooses to grant additional forbearance measures.

The Government have amended the CBILS rules to allow lenders to extend loan terms from six to a maximum of ten years where the borrower is in difficulty and where the lender judges that an extension would help their situation. CBILS term extensions are offered at the discretion of lenders, and any business concerned about their ability to repay their finance should discuss this with their lender in the first instance.

The British Business Bank is participating in the Government’s evaluation of the Covid-19 loan guarantee schemes, which will include an assessment of delivery processes, impacts and value for money.