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Report Claims Bounce Back Loan Defaults Could Hit £27 Billion


Report Claims Bounce Back Loan Defaults Could Hit £27 Billion
A report distributed by
Business Rescue Expert claims that defaults of Bounce Back Loan Scheme (BBLS) could cost HM Treasury up to £27 billion.
BBLS is a key business support program launched by the UK government to help backstop the stumbling economy that was pummeled by the COVID-19 health crisis.
According to the British Business Bank, the entity that managed BBLS, 1,531,095 Bounce Back Loans worth £46.5billion, were issued to UK businesses. The Bounce Back Loan Scheme Top-Ups showed 101,666 approved for £0.9 billion.
Bounce Back Loans targeted small and micro businesses, providing loans from £2,000 up to 25% of the business’ turnover with a maximum loan of £50,000. These loans provided lenders with a 100% government-backed guarantee and many loans were available within days. These loans held a six-year term at a government set interest rate of 2.5% a year. The government will cover inter ....

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