| answer text |
<p>Many businesses have already begun making capital repayments relating to their
Coronavirus Business Interruption Loan Scheme (CBILS) facility. While the Government
covers the interest payments and any lender-levied fees due on CBILS loans for the
first twelve months of the loan, via a Business Interruption Payment, repayments of
capital are required during this period unless a lender chooses to grant additional
forbearance measures.</p><p> </p><p>Lenders are able to extend the repayment period
for 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.</p><p> </p><p>The Government does not set interest rates
in connection with CBILS facilities, as CBILS operates as a delegated scheme. All
final lending decisions including on pricing are at the discretion of the lender,
and the rate varies in line with the lender’s own policies, as would be the case with
any commercial facility.</p><p> </p><p>However, as part of the accreditation process
undertaken by the British Business Bank, lenders are required to demonstrate that
the economic benefit of the guarantee is passed on to consumers through a proportionate
reduction in their pricing for CBILS facilities.</p>
|
|
