Here are the details of this case involving a £50,000 Bounce Back Loan.
David Allen caused Nine A Ltd (“Nine A”) to make an application for a Bounce Back Loan (BBL) of £50,000, using an overstated turnover figure in the loan application form which he knew, or ought to have known, was false. Consequently, Nine A received £33,002 more than it was entitled to.
In that:
- A business could apply for a loan of between £2,000 and £50,000 subject to a maximum of up to 25% of its turnover for the calendar year 2019.
- On the 14 May 2020, Mr Allen made an application for a BBL of £50,000 on behalf of Nine A stating the turnover was £230,000.
- Nine A’s turnover figures for the years ending 31 January 2019 and 31 January 2020 were £75,546 and £65,695 respectively.
- Analysis of the breakdown of turnover received from the accountant shows that the turnover for the calendar year 2019 was £67,993, therefore the company was only eligible for a maximum BBL of £16,998.
- On 16th December 2021, Nine A entered into a Creditors’ Voluntary Liquidation with liabilities of £110,812, including £50,000 which is owed in respect of the BBL.
