Read on for the details of this wayward £50,000 Santander Bounce Back Loan.
On 26 June 2020, Kenneth Ugwo (“Mr Ugwo”) caused 76 DIGITAL MARKETING LTD (“76”) to apply for a Bounce Back Loan (“BBL”) of £50,000 when he knew or ought to have known that 76 was not entitled to a BBL.
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 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.
- 76 was incorporated on 28 July 2016.
- Mr Ugwo applied for a BBL of £50,000 on behalf of 76 declaring that its turnover for the calendar year 2019 was £213,000.
- Company accounts for 76 to year end 31 July 2019 show turnover of £1,191.
- Company accounts for 76 to year end 31 July 2020 show turnover of £1,143.
- Based on this level of turnover for the calendar year 2019, 76 was not eligible for a BBL.
- 76 received the BBL funds of £50,000 on 29 June 2020.
- Total liabilities at liquidation amount to £50,450 of which £50,000 relates to the amount owed in respect of the BBL.
