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Coronavirus Business Interruption Loan Scheme

Volume 676: debated on Monday 18 May 2020

What recent discussions he has had with the Secretary of State for Business, Energy and Industrial Strategy on the effectiveness of the coronavirus business interruption loan scheme. (902702)

The Treasury is working closely with the Department for Business, Energy and Industrial Strategy to monitor the uptake and effectiveness of the coronavirus business interruption loan scheme. The scheme has already helped thousands of businesses since its launch on 23 March and is continuing to ramp up. As of 10 May, almost 36,000 facilities with a value of over £6 billion have been approved through the CBILS. SMEs now have a choice of over 60 lenders offering finance under CBILS, and further announcements on numbers will happen later this week.

Despite that, the uptake of the coronavirus business interruption loan has been disappointing, leading to the bounce-back loans. Could we have much more accurate reporting on this, much more like the health statistics and perhaps also by region, so we can see what is actually happening?

We are looking very carefully at the figures and we publish them on a weekly basis. I am having conversations with banks on a regular basis, and we are having a roundtable this week to monitor progress. We will look to make further interventions should that be necessary, but absolutely it is important that the loans get out quickly, as they have been designed to do.