PARLIAMENTARY WRITTEN QUESTION
Coronavirus Business Interruption Loan Scheme (23 February 2021)

To ask the Secretary of State for Business, Energy and Industrial Strategy, what assessment his Department has made of the effect of allowing extensions on repayment periods from six to 10 years on loss rates from the Coronavirus Business Interruption Loan Scheme.

Asked by:
Ed Miliband (Labour)

The Government has enabled lenders to extend the repayment period for Coronavirus Business Interruption Loan (CBILS) facilities beyond 6 years (up to a maximum of 10 years) where this is needed in connection with the provision of forbearance. CBILS term extensions are offered at the discretion of lenders. This measure is designed to help businesses that would struggle to repay their CBILS facility on their existing terms, by reducing monthly repayments.

Work is currently underway with data scientists, other Government departments and external consultants on a range of projects to develop our analysis on various datasets, in order to give us the best possible insight into the scheme.

The Department will report updated estimates of expected credit losses as part of its Annual Report and Accounts for 2020-21, to be published later this year.

Answered by:
Paul Scully (Conservative)
1 March 2021