Unintended Consequences of the Bounce Back Loan Scheme

The Bounce Back Loan Scheme has helped to extend billions in capital to businesses who sorely needed it, though there is a brewing question being asked about the program; should all of the companies who received capital be allowed to receive it? many of the companies were already heavily indebted and defaults are bound to rise when payments start coming due in 2021; Richard Churchill, a partner at Blick Rothenberg, warned in The Financial Times: “the taxpayer is now underwriting millions of pounds of unqualified loans.”; predictions are at around 20 percent who will default and 43 percent of businesses say they have no plans to pay the loans back; it seems to be inevitable that the government will be forced to step in to rescue both sides and as AltFi says why hasn’t this process already started? Altfi

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