Barclays sure have seen a massive amount of their BBL’s turning sour, and here are the details of another one which resulted in a 10 year ban for the Company Director named.
On 20 July 2020 Mr Clive Victor Allen (‘Mr Allen’) applied for and obtained a Government-backed Bounce Back Loan (‘BBL’) of £45,000 for Country Kitchen Superstore Ltd (‘CKS’) by providing false or knowingly inaccurate information regarding CKS’s turnover/estimated turnover in 2019, thereby causing it to obtain £40,944 to which it was not entitled.
In addition, a payment of £25,000 was made to Mr Allen on 05 January 2021, funded by the BBL, which was not for the economic benefit of the business as required by the scheme.
In that:
Obtaining a BBL
- The BBL scheme permitted a loan of up to 25% of a business’ turnover in the calendar year 2019 (or estimated turnover if it had been established after 01 January 2019), to a maximum of £50,000
- CKS was incorporated in September 2019 and commenced trading at that time
- Its bank statements record income of £12,165 to the date of the BBL, pro-rata this would have been income of approximately £16,224 pa and would have entitled CKS to a BBL of no more than £4,056
- On 20 July 2020 Mr Allen completed an application form for a BBL from CKS’s bank, self-certifying that its turnover/estimated turnover in 2019 was £180,000 and requesting a loan of £45,000.
- Mr Allen has not provided any documentation to support the level of turnover claimed in the application.
Disbursal of the BBL
- The terms of the BBL scheme required the proceeds to be used solely for the economic benefit of the business
- Immediately before the receipt of the BBL the bank account balance was £2,305 in credit
- The BBL was paid into CKS’s account on 21 July 2020
- Following this income of £2,181 was received up to 04 January 2021, giving available funds of £4,486 (excluding the BBL)
- On 05 January 2021 a payment of £25,000 was made to Mr Allen
- This payment could not have been made without £20,766 of the BBL moneys
- At the liquidation date the full amount of the BBL remained outstanding.
