If a company folds owing money under this scheme, then it seems clear that it (or the members where PGs have been given to the bank) are liable for the 25% not guaranteed by HMG.
But how does the 75% work in practice? Do the banks automatically call in the guarantee from the government for the 75%? Or do they first seek to recover from the company / PGs and then only from the government if they can't collect from the company? Obviously, if it's the latter, that could be a problem where PGs have been given.
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Was told a few years ago by a Bank ..
That the Government was last resort after normal avenues (i.e. PG's) had been explored - else why ask for PG's in the first place?
Of course, in the past, the way around PG's was to say that home is owned with wife who had nothing to do with the business & didn't give permission for her 1/2 to be used as PG - used to be accepted by the banks; probably not now
Therefore PG's are probably on the line before the Government stumps up