4.1 The government agrees with the Committee’s recommendation. Recommendation implemented 4.2 The Bank has written to the Committee on this matter on 17 December 2021. 4.3 Both the Coronavirus Business Interruption Loan Scheme (CBILS) and the Coronavirus Large Business Interruption Loan Scheme (CLBILS) were designed with the intention of supporting a wide range of businesses, including those not wholly domiciled in the UK, as well as importers, so long as the loans are used in part to the benefit of the UK operations. Under scheme rules, a loan made will not be guaranteed if the borrower does not meet a range of eligibility criteria which determine if they are UK based. 4.4 As delegated schemes, lenders are required to have their own processes and controls in place to ensure that funds are used in accordance with the scheme rules. The Bank’s lender audit assurance programme includes testing to verify that UK eligibility criteria are being met. Experience from the first round of audits, which was focussed on loan application processes (including application of scheme eligibility criteria), showed it was effective in remedying identified issues and ensuring lenders took action to improve compliance under the scheme. 4.5 If a lender is found to have failed to properly apply scheme eligibility criteria, the Bank has a range of measures at its disposal to remedy the situation, including the removal of the guarantee.