Question to the Department for Business, Energy and Industrial Strategy:

To ask the Secretary of State for Business, Energy and Industrial Strategy, what steps his Department is taking to (a) tackle Bounce Back Loan Scheme fraud and (b) help ensure that loans under that scheme are provided to businesses based on (i) need, (ii) long-term viability and (iii) potential repayment ability.

As part of the Bounce Back Loan Scheme (BBLS) application process, lenders undertake fraud checks, including Know Your Customer and Anti Money Laundering checks as required. In addition, the application form is clear – any individual who knowingly provides false information is at risk of criminal prosecution. We are working across Departments, along with lenders and law enforcement agencies to tackle fraudulent abuse of the scheme.

The borrower is required to self-declare that they meet the eligibility criteria for the scheme and are required to state whether they understand the costs associated with the repayment of the loan. They must also confirm that they are able, and intend to, complete timely repayments in future. Furthermore, the maximum facility size for any business borrowing under BBLS is subject to affordability limits specific to each business.