Today, the National Audit Office released a report claiming whilst the Bounce Back Loan Scheme succeeded in quickly supporting small businesses, the government still faces a potential loss of £15bn to £26bn through fraud and businesses not being able to repay.
Scott Donnelly, CEO, CapitalBox, said: “The UK government had the right idea with the Bounce Back Loan Scheme, unfortunately, it lacked in execution. It is important to get money to the healthy SMEs out there, so they can stay afloat during these hard times, but a helicopter money approach is doomed to exploitation. Loosened but prudent underwriting and fraud controls have to be in place for any loan scheme to work. The bread and butter basics of lending still apply.”