Bounce Back Loan Scheme

(asked on 3rd July 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, what procedures he has put in place to ensure probity in the administration of the Bounce Back Loan Scheme; and if he will make a statement.


Answered by
Paul Scully Portrait
Paul Scully
This question was answered on 13th July 2020

The British Business Bank (BBB) operates the BBLS via its group of accredited delivery partners.

In order to become an accredited delivery partner, lenders must provide a detailed submission, providing information on the applicant’s organisation and its intended use of the BBLS. The BBB then conducts due diligence, assessing the applicant’s business, governance, risk management and compliance frameworks.

Before being able to commence lending via the Scheme, a Lender will then be required to complete a number of preparatory steps. Firstly, the BBLS Guarantee Agreement must be signed by the Lender. This is a standard agreement, with limited scope to negotiate changes. The BBB will then provide the Lender with training on use of the BBB Reporting System, as well as general training and communications materials on how the Scheme works.

Accredited lenders must provide records of all eligible transactions on the BBB Reporting System in a timely and accurate manner in accordance with the guidance issued. The BBB Reporting System records details, the amount and terms of the lending, any extension of the terms of the lending, borrower default and claims against the guarantee of all BBLS-supported facilities. Lenders are also subject to periodic audits, whereby samples of transactions will be analysed during the audit to check that Scheme eligibility rules and processes have been followed.

This reporting, alongside other information on the performance of the Scheme and accredited lenders is fed into various governance fora including BBB, BEIS and HMT officials, as well as regular briefings to BEIS and HMT Ministers. Statistics showing the take up of the BBLS are published weekly by HM Treasury.

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