Among the financial lifelines thrown to businesses by the government in the first weeks of the coronavirus lockdown was the Bounce Back Loan Scheme.

The scheme allows banks to lend small firms up to £50,000 which is backed by a 100% state guarantee. By early October it had provided loans of more than £38 billion.

But now it has emerged that the scheme faces billions in losses from fraud – something which the government was warned about when it was launched in early May.

A BBC report recently revealed that criminals were setting up fake firms “on an industrial scale to get loans worth tens of thousands of pounds”.

The National Crime Agency and National Insolvency Service have said it will examine cases of serious and organised crime linked to the scheme, and help banks detect fraudulent applications. The operation is also likely to catch genuine claims with businesses being pressed for evidence

If you find yourself facing investigation by the police or other authorities our specialist and highly experienced solicitors are ready to assist.

For further information contact Piers Desser, Partner and Head of the Criminal Litigation Department, Piers Desser or call 020 7613 2711.

(Please note: This article was originally published on our previous website and is provided for general information purposes only. While it reflects the legal position at the time of writing, the law may have changed since publication. For up-to-date advice tailored to your circumstances, please contact our team.)