Coronavirus Business Interruption Loan Scheme

(asked on 17th June 2020) - View Source

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

To ask the Secretary of State for Business, Energy and Industrial Strategy, whether the interest rates that a lender sets for CBILS loans is a factor in determining whether that company is accredited as a CBILS lender.


Answered by
Paul Scully Portrait
Paul Scully
This question was answered on 22nd June 2020

Interest rates are one of a range of factors taken into consideration when the British Business Bank reviews a lender’s application to become a Coronavirus Business Interruption Loan Scheme (CBILS) delivery partner.

The accreditation agreement makes clear that the interest rate at which the lender is prepared to lend at, and any associated fees, should be based on a lender’s normal pricing framework.

The Government expects that the benefit of the CBILS guarantee is passed through to the borrower. This should be reflected in the interest rate and lender-levied fees that are charged on each CBILS facility, both during the period of the Business Interruption Payment and for the remainder of the facility.

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