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<p>There is no government policy to wholesale write off loans. Under the Bounce Back
Loan Scheme (BBLS) all loans are liable to recovery action by lenders or – in the
case of serious fraud or financial crime - law enforcement.</p><p> </p><p>Unfortunately,
some loans will ultimately not be recoverable and may result in lenders claiming on
the government guarantee. All guarantee claims are scrutinised closely by the British
Business Bank as administrators of the Scheme before they are settled. These claims
include defaults due both to credit losses, where a business took the loan in good
faith but could not make repayments and a smaller proportion that were marked as suspected
fraud. Lenders continue to make recovery efforts even after they claim on the guarantee
and return recovered funds to the government, so some of that money may be returned
to HM Government in due course.</p>
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