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

To ask the Secretary of State for Business, Energy and Industrial Strategy, pursuant to the Answer of 30 June 2020 to Question 64971 on Coronavirus Business Interruption Loan Scheme (CBILS), what steps the Government is taking to ensure that lenders pass the economic benefit of the existence of the Government's 80 per cent guarantee of a CBILS facility to the borrower through lower pricing than that borrower may otherwise have had.

The Coronavirus Business Interruption Loan Scheme (CBILS), 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 agreement also makes clear that lenders must pass the economic benefit of the Government guarantee to the borrower.

Lenders undergo periodic audits. Samples of transactions will be analysed during the audit to check that scheme eligibility rules and processes have been followed, including whether the economic benefits of the CBILS Guarantee has been passed on to borrowers in the form of lower borrowing costs.