What Happens If a Company Can’t Pay It’s Bounce Back Loan?

Lockdowns in 2020 and early 2021 due to the coronavirus pandemic hit many businesses across the UK hard. To help small businesses that were, and are, struggling to survive due to Covid-19, they were able to apply for funding via a Bounce Back Loan Scheme introduced by the Government in May 2020. The loan allowed small businesses to borrow up to £50,000 with no repayments for a year and no interest charged on the amount during that time either.



Approximately a quarter or all UK businesses applied for a Bounce Back Loan, totalling £47 billion, according to the National Audit Office. 90% of loans were taken out by small businesses that have a turnover of less than £650,000. However, the Department for Business, Energy & Industrial Strategy, who manage the scheme, estimated that 37% of all Bounce Back Loans won’t be repaid. With many Bounce Back Loans now beyond their initial repayment-free, interest-free 12 month period, or reaching that time, what happens if a company can’t either start or continue to make its repayments?


Read More - https://www.simpleliquidation.co.uk/what-happens-if-a-company-cant-pay-its-bounce-back-loan/



Location: United Kingdom

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