It has become increasingly clear over the past few days that the government and treasury are becoming increasingly uneasy at the failure of the banks to deliver the Coronavirus Business Interruption Loans (“CBILS”) as they had hoped.
The Chairman of the Commons Treasury Committee wrote to the British Business Bank and UK Finance earlier this week to request an update on CBILS. Mel Stride, MP has now written to all the accredited lenders asking for date to be provided to the committee and advised that representatives will be required to give evidence in public on their progress.
Mr Stride added. “These lenders are vital to ensuring that many businesses get the support they so urgently need, but data published so far shows that this can be a lengthy process.
“I have already requested daily updates from the BBB and UK Finance to help drive further vital lending. Today I have asked the accredited lenders to cooperate fully with the Committee’s request in ensuring that this data is made available, and without delay.
“Greater transparency on progress will allow the public to be assured that the financial services sector is stepping up to the plate in providing support.”
Alison Rose, CEO of the Royal Bank of Scotland Group, defended her bank’s position on the Today programme on Friday saying that 7,000 loans totalling £3.5bn had already been approved and that the proportion turned down had been “very low”.
Pressed on the recent media coverage she added that business that were not viable pre-COVID were being refused these loans on normal banking principles and that any increase to a 100% government loan guarantee would not change this.
There appears to be a big discrepancy between what MPs, the Treasury and business is saying and what the banks are saying. Whatever the rights and wrongs of the respective parties one thing seems clear, these loans are vital to the survival of many businesses and need to be delivered soon.
