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

To ask the Secretary of State for Business, Energy and Industrial Strategy, what assessment he has made of the compatibility of lending (a) rules and regulations and (b) practice with ensuring that small businesses receive loans under the Coronavirus Business Interruption Loan Scheme.

Individual lending decisions under the Coronavirus Business Interruption Loan Scheme (CBILS) are delegated to over 60 lenders accredited under the Scheme. These banks and other financial institutions are regulated by the Financial Conduct Authority and are required to comply with a number of regulations, including anti-money laundering and ‘know your customer’ rules, designed to combat fraud and other forms of financial crime.

The majority of lenders also subscribe to voluntary Standards of Lending Practice overseen by the independent Lending Standards Board.

These regulations and standards are compatible with ensuring that small businesses receive CBILS loans, as shown by the fact that as of 6 May, in total over £5.5 billion worth of loans have been issued under the scheme to 33,812 businesses.

The new Bounce Back Loan Scheme launched on 4 May to help the smallest SMEs to access loans from £2,000 up to 25% of a business’ turnover, with maximum loan amount of £50,000. To apply for the scheme businesses will be able to complete a short, simple, online application form, meaning that applications can be submitted and processed rapidly and businesses can access loans within a matter of days.