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

To ask the Secretary of State for Business, Energy and Industrial Strategy, what steps his Department is taking to ensure the adequacy of scrutiny of the recovery practices of coronavirus business loan lenders.

Covid-19 loan scheme lenders are expected to pursue appropriate recovery processes in line with existing industry standards. Lenders undergo periodic audits to check that scheme eligibility rules and processes are being followed.

Under the Bounce Back Loan Scheme (BBLS), lenders, the British Business Bank and Government have agreed a set of principles relating to collections and recoveries, in order to facilitate fair and consistent treatment of BBLS borrowers.

For the Coronavirus Business Interruption Loan Scheme (CBILS) and the Coronavirus Large Business Interruption Loan Scheme (CLBILS), lenders retain some of the risk and so are expected to utilise their usual industry practices.