Small business owners are struggling to access government-backed loans as concerns about fraud and future defaults cause banks to restrict access to the scheme.
This week, the National Audit Office warned that up to £26bn of the £38bn already loaned under the bounceback loan scheme may never be repaid due to company failures and suspected criminal activity.
Although chancellor Rishi Sunak extended the application deadline until November 30, many banks are no longer offering bounceback loans or restricting them to existing customers. Businesses attempting to switch banks report long delays caused by the volume of applications and additional security checks.
“The system they’ve brought in to control potential fraud is now causing huge problems for valid claimants,” said Mr Bounceback, an anonymous businessman in the north of England whose website has helped thousands of people access the loan scheme. “People are watching the clock tick down on applications, and fear