Coronavirus (COVID 19)—LSB updates Standards of Lending Practice to reflect changes to CBILS

COVID-19

Coronavirus (COVID 19)—LSB updates Standards of Lending Practice to reflect changes to CBILS

29 Apr 2020 | 1 min read

The Lending Standards Board (LSB) has published its response to the changes to the UK Coronavirus Business Interruption Loan Scheme (CBILS) announced by the government on 27 April 2020. The Standards of Lending Practice for business customers will be updated to reflect any amendments required to ensure that they do not prohibit participating firms from meeting the requirements of the CBILS.

The LSB recognises the need for changes to the criteria lenders must apply when considering the provision of finance under the CBILS. The Standards of Lending Practice for business customers will be updated to reflect any amendments required within the coming days.

Firms meeting the requirements of CBILS in relation to the assessment of credit and business viability will be acknowledged as adhering to the Standards.

The LSB states that affordability checks for non-CBILS lending remain a requirement under the Standards of Lending Practice for business customers and Standards of Lending Practice for business customers—asset finance.

Source: Response to the chancellor’s announcement of changes to the Coronavirus Business Interruption Loans Scheme

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