The UK government launched the Bounce Back Loan (BBL), Coronavirus Business Interruption Loan Scheme (CBIL) and a version of CBILS for larger companies (CLBILS), which now is known as the Recovery Loan Scheme (RLS). All in a response to the economic hardship caused by Covid 19
The schemes gave the lenders a government backed guarantee for the loan repayments to encourage more lending. However, the borrower always remained fully liable for the debt.
The government’s coronavirus relief measures were a lifeline to many businesses, but not all the money was used for its intended purpose.
Here’s some of the latest misuse and fraud statistics.
- As of 31 December 2022, businesses have drawn £46.6 billion through BBLS, £25.9 billion through CBILS, and £4.5 billion through CLBILS.
- The total amount drawn across all schemes is £77 billion, with an outstanding balance of £38 billion and £14.5 billion fully repaid by borrowers.
- There is £3.2 billion in arrears, £1.2 billion in defaulted loans, and £1.8 billion in claimed loans that haven’t yet progressed to be settled.
- A total of £4.4 billion has been settled, and lenders have flagged £1.16 billion as suspected fraud for BBLS and CBILS.
- Since January 2022, there have been 59 people prosecuted for Bounce Back Loan misuse or fraud.
- Of the 59 BBL misuse prosecutions, 2 were jailed, 2 were handed suspended prison sentences, and the remainder were banned as company directors for 7 to 12 years.
The figures are expected to increase.
