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Loans: Small Businesses

Question for Treasury

UIN 57071, tabled on 15 October 2021

To ask the Chancellor of the Exchequer, what plans he has to extend the Term Funding Scheme to non-bank lenders to improve alternative financing options.

Answered on

22 October 2021

The Term Funding Scheme (TFS) is a monetary policy tool of the independent Monetary Policy Committee (MPC) of the Bank of England. Therefore, it is not appropriate for the Government to comment on its conduct or effectiveness.

The separation of fiscal and monetary policy is a key feature of the UK’s economic framework, and essential for the effective delivery of monetary policy.

We will continue to work with non-bank lenders to support their participation in the new Recovery Loan scheme following the closure of the Coronavirus Business Interruption Loan Scheme (CBILS), the Coronavirus Large Business Interruption Loan Scheme (CLBILS), and the Bounce Back Loan Scheme (BBLS).

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