Lessons from Greensill Capital

In response to the COVID-19 pandemic the government launched a series of schemes providing financial support to businesses of all sizes. Of these, the Coronavirus Large Business Interruption Loan Scheme (CLBILS) provided support to the largest businesses—those with a minimum turnover of £45 million. Commercial lenders (for example, banks, building societies and peer to peer … Show more

In response to the COVID-19 pandemic the government launched a series of schemes providing financial support to businesses of all sizes. Of these, the Coronavirus Large Business Interruption Loan Scheme (CLBILS) provided support to the largest businesses—those with a minimum turnover of £45 million. Commercial lenders (for example, banks, building societies and peer to peer lenders) provided financial support directly to businesses. Borrowers are expected to repay the debt in full and government provides a guarantee to the lenders. The British Business Bank (BBB), acting as scheme administrator on behalf of the Department for Business, Energy and Industrial Strategy, authorised lenders to provide financial support under CLBILS following an accreditation process. BBB authorised Greensill Capital to issue financial support in June 2020. Greensill Capital filed for insolvency on 8th March 2021. Drawing on Committee’s previous work and the National Audit Office’s report on Greensill Capital , the inquiry will consider the operation of the Covid 19 financial support packages for business, in particular Greensill Capital’s involvement in the schemes including the accreditation process, and any post-accreditation monitoring of Greensill Capital’s activities. The Committee will question senior officials at the Treasury and Department for Business, and the chief executive of the British Business Bank. If you have evidence on these issues please submit it here by 6pm on Tuesday 20 July 2021. Show less