Government Bouncing Back

During the pandemic and lockdown, many businesses only managed to survive through the assistance of the Government backed bounce back loan schemes. Despite the considerable efforts of some many directors and owners, many businesses still failed, often leaving sizeable debts and liabilities including the bounce back loans.

Loans were applied for using a simple criteria primarily based on declarations made by the applicant and were available up to £50,000. Funds were usually made available and were paid quite quickly.

Unfortunately, a few applicants advanced false claims and by consequence there is now an intention by the Government to conduct investigations into these guaranteed bounce back loans, in particular where a company has failed, to determine whether applicants have made false declarations or mis-used the loan amount for personal as opposed to business reasons.

We have received information that the Government are now actively recruiting up to 200 investigators from various fields, including Police, HMRC, Crown Prosecution Service and the Insolvency Service, to investigate for and pursue false applications and to both seek the recovery of the loans personally from the applicants and/or pursue criminal prosecutions.

Such investigations will initially focus on companies that have failed or have, by consequence of a failure to comply with statutory obligations, been struck off the Companies House register.

If you are considering closing your company or business and have or will have an unpaid bounce back loan, we can undertake a review of any potential exposure or liability. If you have been contacted by the Insolvency service or any other agency about a bounce back loan, Our Company Law Solicitors can assist and act on your behalf in dealing with any such investigation or enquiry.