The Bounce Back Loan Scheme was created to lend up to £50,000 to businesses which had been affected by the lockdowns. The loan was for the equivalent of 25% of the business’s most recent annual turnover, up to a maximum loan of £50,000. The loans featured a low interest rate and are widely regarded as having been an effective way for businesses to return to profit-making after the pandemic.
Many businesses which used the loans have been highly successful as a result. However, due to the absence of checks, the Government suspects that there were many businesses which claimed funds either in error or dishonestly. For example, it is alleged that some businesses exaggerated turnover figures in order to secure loans or apply for the loan multiple times with different lenders.
The Taxpayer Protection Taskforce is committed to recovering wrongly paid-out loans and taking action against the individuals responsible. This has included compulsory liquidation of businesses or making personal claims against officers of the company.