Read on for the details of this wayward Starling Bank Bounce Back Loan.
On 1 June 2020, Carley Nicole Bassett (“Ms Bassett”) caused Sisi & Seb Limited (“SASL”) to make a Bounce Back Loan (“BBL”) application of £50,000 when she knew or ought to have known that the company was not entitled to a BBL of such amount.
Ms Bassett made a wrongful declaration by overstating SASL’s turnover contrary to the terms and conditions of the BBL scheme and as a result, SASL received £36,830 more BBL funds than it was entitled to.
In that:
- Under the BBL scheme, businesses could apply for a loan of between £2,000 and £50,000 subject to a maximum of up to 25% of its turnover.
- The turnover figure was self-certified by the applicant.
- The turnover figure required was that for the calendar year 2019 or where a business was established after 1 January 2019 it is their estimated turnover.
- SASL was incorporated on 27 January 2017
- Accounts for the period ended 31 January 2019 reveal turnover of £30,594.
- Accounts for the subsequent period ended 31 January 2020 reveal turnover of £52,680.
- On 1 June 2020, Ms Bassett applied for a BBL of £50,000 on behalf of SASL.
- A £50,000 BBL required a declared turnover of at least £200,000.
- SASL received the BBL funds of £50,000 into its bank account on 2 June 2020.
- Based on the accounts for the period ended 31 January 2020, SASL was eligible to apply for a BBL of £13,170 and received £36,830 more than it was entitled to.
- Total liabilities at liquidation amount to £108,288, of which £48,529.43 relates to the amount owed in respect of the BBL.
