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Bounce Back Loan Scheme Fraud

In April 2020, the Bounce Back Loan Scheme was announced by the Government to help small businesses that were affected by the coronavirus pandemic and the lockdown it led to. Through the schemes, these businesses could borrow between £2,000 and £50,000. The amount they could borrow would work out to 25% of their turnover in 2019.

In June 2021, it was announced that basic fraud checks weren't used to check applicants, as there was a rush to help the vulnerable business to ensure they would get help throughout the pandemic.

HMRC is now investigating which business deliberately abused the Bounce Back Loan Scheme. They are working with the National Investigation Service and the Insolvency Service to investigate fraud and recover fraudulent loans and penalise guilty parties.

It's estimated that about £17 billion won't be repaid due to fraud and defaults.

By September 2022 the Nation Investigation service has opened 273 investigations with a total of £160 million. The insolvency service had issued 242 director disqualifications, 101 bankruptcy restrictions and one criminal prosecution.


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