Recovery of Covid-19 Business Grant Funds
12 April 2021
Debt Recovery & Insolvency
A recent BBC News NI article has reported that The Department of Finance have contacted 480 businesses requesting the repayment of money issued under a Covid-19 grant scheme. Officials are seeking to recover £4.38 million following a review.
It is reported that the incorrect payments appear to have occurred for a number of reasons, including:
1. The business was permitted to operate during the restrictions period.
2. It has ceased trading since the application was made or was not open and trading at the start of the restriction period.
3. It is not operating from commercial premises.
If a business cannot repay the amount, it is further reported that Land and Property Services have indicated that it will enter into a payment arrangement. However notwithstanding this many businesses, having received a lifeline under the various government schemes and protections, will have additional competing demands upon cash-flow from creditors once the supports or protections end and the full economic effects of Covid-19 hit home.
Many businesses may now wish to consider what alternative insolvency or other options are open to them before it is too late.
At MKB Law we advise numerous clients on all aspects of dealing with creditors demands and the options available. We examine each case carefully on its own merits before providing expert legal advice and representation, both prior to any legal action and after. No one case is the same and our approach is tailored to suit the individual client’s needs.
If you need advice on the above or have been served with legal proceedings please contact our Debt Recovery & Insolvency department to discuss how best our team can help you.