Bounce Back Loans & Insolvency Scenarios
The Bounce Back Loan Scheme was introduced on May 4, 2020, allowing businesses to borrow between £2,000 and £50,000, with 1,531,095 loans granted totalling £46.53 billion. These loans came with attractive features such as a low interest rate of 2.5%, a 12-month interest-free period, and a repayment term of 6 years. The intended use of these funds was primarily for working capital requirements, including staff wages, rent, utilities, creditors' payments, and other essential business expenses. The government provided full guarantees on these loans, ensuring repayment to lenders even in the event of insolvency, as long as the funds were utilised [...]