Coronavirus Business Interruption Loans – Rachel Reeves, BEIS Committee Chair, writes to Chancellor

Rachel Reeves, Chair of the Business, Energy and Industrial Strategy Committee has written to Rishi Sunak, outlining a series of concerns regarding the Coronavirus Business Interruption Loan Scheme (CBILS).

The letter warns that the way the loan scheme is being rolled out and being interpreted  by some lenders is discouraging small and medium-sized businesses from accessing the loans.

Rachel Reeves, Chair of the Business, Energy and Industrial Strategy Committee said: “The Chancellor’s loan scheme is very welcome and necessary but a number of businesses are coming forward with concerns about the Coronavirus Business Interruption Loans Scheme.

“I hope the Chancellor will examine these concerns to make sure businesses get the support they need. Giving clearer guidance to lenders so they can ensure SMEs get the right loan to help them through this crisis and encouraging lenders to look for alternatives to personal guarantees will be important in ensuring CBILS delivers for businesses up and down the country.

“Banks need to be more proactive in approaching the British Business Bank and streamlining applications so that SMEs can access funds quickly. Lenders and the British Business Bank should also be coming forward with regular updates on the total amount of CBILS lending that is taking place so we can see that these monies are going through to the businesses that need them.

“Banks were kept afloat by government and taxpayers during the financial crisis. I would urge them to play their part in helping small and medium sized businesses through this crisis.”