To ask the Secretary of State for Business, Energy and Industrial Strategy, what steps his Department is taking to ensure the adequacy of scrutiny of the lending practices of Coronavirus Business Interruption Loan Scheme lenders.
1 February 2021
The Coronavirus Business Interruption Loan Scheme (CBILS) operates as a delegated scheme, so all lending decisions are at the discretion of the lender. However, lenders are required to agree to and adhere to the Scheme’s Legal agreement.
Furthermore, all CBILS accredited lenders must undergo thorough due diligence as part of the British Business Bank’s accreditation process. Thereafter, lenders undergo periodic audits (including an audit prior to moving from a probationary to a full lender under the Scheme) to check that scheme eligibility rules and processes have been followed. The British Business Bank can suspend a lender from new lending or remove its accreditation if it is not following the correct lending practices.