LSB updates Lending Standards for Business Customers to take into account measures to support lending to SMEs in light of COVID-19

Industry News | 26/03/20

The Lending Standards Board (LSB) has updated its Standards of Lending Practice for business customers: Product sale, to take into account short term measures to support lending to small to medium-sized enterprises (SMEs) impacted by COVID-19. The LSB notes that the Coronavirus Business Interruption Loan Scheme (CBILS) requires participating firms to consider the viability of a business, and to ‘look through’ the impact of COVID-19 on the short term performance of the business, when considering lending. The LSB would consider participating firms’ compliance with the requirements of CBILS to be compliant with the ‘assessment’ provision of its Standards of Lending Practice.