Three directors have been banned following investigations which found that nearly £100,000 worth of Bounce Back loans had been inappropriately applied for, or misused.
The Bounce Back Loan scheme ran to March 2021 and provided loans of up £50,000 to help businesses survive the impact of COVID-19.
Cases examined by the Insolvency Service ranged from lack of proper record-keeping to appropriating funds borrowed for personal use rather than supporting a business.
All directors have a duty to ensure their companies maintain proper accounting records. The use of a Bounce Back Loan must be for the benefit of the business and never for personal use. Failure to account for how a Bounce Back Loan was used or using it for personal payments, can result in being disqualified as a director or the extension of bankruptcy restrictions.
Recent cases examined by the Insolvency Service may be the tip of an ever-enlarging iceberg that seeks to bring to task businesses that have secured Bounce-Back loans and misappropriated them in these ways.
Source: Informanagement
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