Here is the sorry tale of yet another Barclays Bounce Back Loan that has been left unpaid, which should not have been applied for in the first place.
On 02 September 2020, Mr Aminder Singh (“Mr Singh”) caused Singh Resources Ltd (“SRL”) to make a Bounce Back Loan (“BBL”) application for £40,000 when he knew or ought to have known that SRL was not entitled to the BBL. Furthermore, Mr Singh caused SRL to expend the £40,000 BBL funds for purposes that did not provide economic benefit to SRL, in breach of the BBL terms and conditions.
In that:
- Under the BBL scheme a business had to have been carrying on business on 01 March 2020 in order to be eligible for a loan.
- Eligible 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 01 January 2019, it was their estimated turnover.
- SRL was incorporated on 20 February 2020 but did not trade.
- On 02 September 2020, Mr Singh applied for a BBL of £40,000 on behalf of SRL declaring on the application from that its estimated turnover was £170,000.
- SRL did not trade and was not carrying on business on 01 March 2020 and its actual turnover was Nil.
- SRL received the BBL funds of £40,000 on 03 September 2020.
- Between 17 September 2020 and 12 July 2021, £46,300 was transferred from SRL’s bank account into Mr Singh’s personal bank accounts and Mr Singh has provided no evidence to show that these funds were used for the economic benefit of SRL.
- On 22 March 2022, SRL entered Creditor’s Voluntary Liquidation with total liabilities of £39,731.91. SRL’s only known creditor was the provider of the BBL.
