Taxpayers could lose billions in ‘bounce back’ loans to fraudsters
Taxpayers face losses of as much as £26bn on coronavirus "bounce back" loans that cannot be repaid or are the subject of fraud, the spending watchdog has found.The scheme provides rapid access to 100% government-backed finance worth up to £50,000 to struggling small firms, with fewer checks than other COVID-19 business loan initiatives. It has proved much more popular than anticipated when launched in May, with the total value of loans now expected to be £38-£48bn, up from an initial estimate of £18bn-£26bn. Image: The scheme was launched to support struggling small firms But it relies on firms self-certifying details of their applications and no credit checks by lenders on existing customers, increasing the risks of losses to taxpaye...
