Call us today

Government has instructed fraudulent coronavirus loan applications to be reported

Get in touch today - call Kent on 01634 570 390 or Surrey on 01737 370 493

Book a FREE consultation

If you would like to get some impartial advice, simply book a free consultation and we'll get in touch with you as soon as we can.

Government has instructed fraudulent coronavirus loan applications to be reported

To get ahead of the anticipated rise in company collapses next year, the Insolvency Service has instructed insolvency practitioners to report all fraudulent coronavirus loan applications to them. 

This executive agency of the Department for Business, Energy and Industrial Strategy, has written to companies warning that “if it appears that a person has applied fraudulently” for the Government-supported Bounce Back Loan (BBL) or the Coronavirus Business Interruption Loan Scheme (CBILS), then “it is the duty of the insolvency practitioner to consider their reporting obligations”.

Currently, the National Crime Agency is warning the Government that these bounce-back loans, for small businesses, are targeted by criminals as the loans rely on self-certification to determine eligibility, plus there are inadequate credit checks and verification.

The state British Business Bank, which administers the BBL scheme, also warned the department of this before the launch of the loan in May, stating that it was “vulnerable to abuse by individuals and organised crime”.

As of October, nearly 1.5 million UK companies utilised the £65.5 billion funding through the coronavirus-related lending schemes that the Government provides.

From March, nearly 1.4 million micro and small businesses received support through the BBL scheme, and 77,900 through the CBILS.

For more information or advice on matters relating to insolvency, contact our expert team today.

Top

Urgent COVID-19 Notice
Working From Home

Our first priority is the health and well-being of our team and our community. Therefore, with a heavy heart we have made the decision to temporarily work from home with immediate effect.

We are listening to the government’s daily updates, taking each day as it comes, and will reopen our offices as soon as it is safe to do so.

If you have any questions or need to discuss any issues at all please do email or call us on our usual number 01634 570 390.

The general email is enquiries@orchardaccountants.co.uk.

We hope everyone is keeping well and staying safe.

This website uses cookies to enhance your browsing experience... moregot it