Here are the details of this case.
On 01 September 2020 Mr Mark Edward Vann (“Mr M Vann”) caused JMR Vehicle Solutions Limited (“JMR”) to obtain a £150,000 Coronavirus Business Interruption Loan (“CBIL”) but did not ensure that it was used to repay JMR’s existing Bounce Back Loan (“BBL”), in breach of the CBIL terms and conditions.
In that:
- Under the BBL scheme a qualifying business that was established before 01 January 2019 was able to apply for a loan of up to 25% of its turnover in the 2019 calendar year, up to a maximum of £50,000.
- On 12 May 2020 JMR received a BBL of £50,000; on 01 September 2020 JMR obtained a CBIL of £150,000
On the CBIL application JMR failed to disclose the existing BBL as follows:
- (6) This paragraph 6 only applies if the Borrower has confirmed to the lender that it is currently accessing financial support via the ‘Bounce Back Loan’ scheme (“BBLS”) and the total amount outstanding under BBLS (“BBLS Amount”).
- The Borrower: – confirms that it is currently accessing financial support via BBLS and that the BBLS amount in the sum of £0.00 disclosed to the lender is true and accurate; and – hereby agrees and undertakes to the lender that it will use the Loan Amount (or part of it) to refinance (and hence) repay in full the BBLS Amount.
- The CBIL was not used to repay the BBL in breach of the CBIL terms and conditions, £41,747 of which remained outstanding when JMR went into liquidation on 21 February 2023.
