The impact on the economy of Covid-19 has been detrimental and far reaching. With the UK being officially in recession for the first time in 11 years, the Government has implemented a number of packages in order to help businesses survive these tough times, one of these is the Bounce Back Loan Scheme.
One initiative brought in under the Government’s COVID-19 response, is the Bounce Back Loan Scheme (“BBLS”). The BBLS is supported by the UK Government and allows eligible businesses to borrow between £2,000 and 25% of their turnover. The maximum loan is £50,000. There will be no fees or interest for the first 12 months and after 12 months the interest rate will be 2.5% a year.
In addition, borrowers are required to declare that the business:
Unfortunately, there are any number of ways in which the BBLS can be exploited and these are just a few examples of the frauds which have been attempted (and some succeeded) so far:
In any time of crisis, there are those who will seek to take advantage of schemes that are meant to help businesses and individuals in need. We can only hope that vigilance is maintained, and transparency will certainly assist that goal.
Should you require assistance in understanding issues arising from the Bounce Back Loan scheme, please do not hesitate to get in touch at firstname.lastname@example.org.