Plan for standard guidelines for struggling bounce back loan borrowers

The Treasury is reportedly working with banking trade body UK Finance to develop a standard framework for dealing with bounce back loan scheme (BBLS) borrowers in difficulty. The guidelines would create a standardised process for borrowers that find it difficult to make repayments, including offers of forbearance. It’s been widely speculated that many businesses will struggle to repay bounce back loans with a report from the Recapitalisation Group, EY and lobby group TheCityUK forecasting that up to £36bn worth of government-backed business loans could become toxic by March of next year.