This case revolves around a Starling Bank BBL.
Mr Daniel Atchinson caused I-Line Decor Ltd (“ILDL”) to obtain a Government backed Bounce Back Loan (“BBL”) of £20,000 on 11 May 2020 and a BBL top-up of £30,000 on 18 November 2020 which was not used for the economic benefit of ILD.
In that:
- Under the BBL scheme the funds were to be utilised for the economic benefit of the company and not for personal purposes.
- ILDL was incorporated on 6 November 2018
- An application for a BBL of £20,000 was submitted to ILDL’s bank on 11 May 2020
- ILDL received £20,000 in BBL funds on 11 May 2020.
- Between 11 May 2020 to 30 May 2020 payments totalling £15,000 were made to Mr Atchison.
- During the same period, ILDL received no trading income
- On 18 November 2020 ILDL received an additional top up on the BBL of £30,000.
- Between 18 November 2020 to 22 November 2020 payments totalling £20,500 were paid to Mr Atchison and at least £17,105 of this was derived from the BBL
- No evidence has been provided to show that the funds were applied for the economic benefit of ILDL
- ILDL entered Creditors Voluntary Liquidation on 28 February 2022
- At Liquidation ILDL had liabilities totalling £111,896, £50,000 of which relates to BBL
