Rebecca Stratton reviews misuses of the bounce back loan scheme and how practitioners can advise directors

The Insolvency Service reported in September 2022, corporate insolvencies are 16 per cent higher than in the same month in the previous year (1,453) and 11 per cent higher than the number registered three years previously (pre-pandemic: 1,508 in September 2019).

In addition, the covid-19 support measures offered to companies struggling to stay afloat during the pandemic, including unsecured government-backed lending via the bounce back loan scheme (BBLS), have become due for repayment.

There have been many media reports regarding directors who have been found guilty of covid-19 support fraud, including the misappropriation of BBLS funds. The Insolvency Service has the power to investigate directors where it appears BBLS fraud...

Rebecca Stratton

Russell-Cooke

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