Bounce Back Loan Scheme: Fraud

Department for Business, Energy and Industrial Strategy written question – answered on 30th March 2022.

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Photo of Angela Eagle Angela Eagle Labour, Wallasey

To ask the Secretary of State for Business, Energy and Industrial Strategy, what steps his Department is taking to ensure lending banks follow up potentially fraudulent claims made through the Bounce Back Loan Scheme, before claiming the state guarantee.

Photo of Paul Scully Paul Scully Parliamentary Under-Secretary (Department for Business, Energy and Industrial Strategy), Minister of State (London)

The British Business Bank manages the Bounce Back Loan Scheme on behalf of the Government. However, lenders are responsible for managing the direct relationship with borrowers.

The Bank challenges lenders on discrepancies and ensures lenders are abiding by the scheme rules through its guarantee assurance and audit programmes. Where issues are identified through the Audit Assurance Programme, the Bank can take remedial action including the cancellation of a guarantee.

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