§ Mr. Gryllsasked the Secretary of State for Trade and Industry what instructions have been given to the loan guarantee scheme unit which is responsible for vetting applications approved and put forward by the participating institutions, in respect of applicants who have previously been placed into liquidation whilst owing amounts to the Inland Revenue or the Customs and Excise; and if similar instructions are given with regard to situations in which the amounts not recovered in a previous liquidation relate to non-preferential creditors only.
§ Mr. Trippier[pursuant to the reply, 12 March 1984, c. 11]: In most cases the loan guarantee unit receives very little background information on individual scheme applicants. However, in carrying out their assessment the banks will clearly want to take full account of the previous experience of those who will be running the business. If applicants have been involved in a previous business failure, where either preferential or unsecured creditors were unable to recover the amounts owed to them, the banks will need to consider carefully the particular circumstances and take a view on how far this should influence their decision on whether to support the LGS application. Previous business failures do not automatically exclude potential applicants from the scheme unless the failure involved other lending under the LGS that resulted in a claim under the guarantee arrangements.