Although the BBLS is now closed to all new applicants, repayments are kicking in and many issues are coming to light were BBLs have been fraudulently claimed.
We thought it might be a timely reminder of the eligibility of a BBL.
- A business must have been actively trading at 1 March 2020
- Only one application can be made per group of companies
- Applicants can only claim up to 25% of their turnover up to a max of £50k
- Have any other Covid related support
- Must not have defaulted on any other borrowing
- Must support trading or have commercial activity in the UK
Misuse of the BBL cash includes
- Personal use
- Financing a dividend
- Repayment of loan
Insolvency practitioners are being told that any suspicion of misuse of a BBL loan must be reported to the Government.