Is there any specific law or regulations in force that created the Coronavirus Business Interruption Loan Scheme scheme? If so, what are they? Or is the British Business Bank the only source of the scheme?

Is there any specific law or regulations in force that created the Coronavirus Business Interruption Loan Scheme scheme? If so, what are they? Or is the British Business Bank the only source of the scheme?

While there is no specific primary legislation in relation to the Coronavirus Business Interruption Loan Scheme (CBILS), section 75 of the Coronavirus Act 2020 (CA 2020) disapplies section 8 of the Industrial Development Act 1982, permitting the government to provide financial assistance to industry sectors. In essence, CA 2020, s 75 provides a gateway power for state assistance.

Further, in March 2020 the European Commission adopted a Temporary Framework which enables Members States to 'use the full flexibility foreseen under State aid rules to support the economy' during the coronavirus (COVID-19) pandemic. This applies to the UK as all EU rules relating to State aid will do until 1 January 2021. On 25 March 2020, the Commission approved the CBILS.

The scheme is run at the government's discretion through the state owned British Business Bank.

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