Read on for the background of this case and the wayward Barclays Bounce Back Loan.
In May 2020, Sara Brearley, (“Mrs Brearley”) caused Nourish Blueprint Ltd (“Nourish”) to overstate the company’s turnover to obtain a £30,000 government backed Bounce Back Loan (“BBL”), when the company was not entitled to the loan, by providing information to the lender which she knew or ought to have known was inaccurate or false.
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.
- Nourish was incorporated on 15 November 2010.
- On 16 May 2020, a BBL of £30,000 was applied for on behalf of Nourish.
- The application form asked for the company’s annual turnover for the calendar year 2019.
- The figure given in answer to this question was £120,000
- Credits into Nourish’s company bank account for the calendar year 2019 total £6,779.
- As BBLs could be between £2,000 and £50,000, based on 25% of turnover for 2019, the minimum turnover to make a business eligible for a BBL was £8,000.
- Therefore, Nourish was not eligible for a BBL
- The £30,000 BBL was paid into the company bank account on 18 May 2020
- At liquidation on 11 July 2022, the £30,000 BBL remained outstanding.
