The recent global climate has had a significant impact on all aspects of our lives and none more so than the economic environment. The mandated closure of businesses has been an extremely challenging period for all of those affected, and has threatened a devastating impact on incomes and their future. What is clear today is that many businesses have not bounced back.

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Bounce Back Loan director jailed​

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Director of Manchester Pizza takeaway who claimed £20,000 Bounce Back Loan has been jailed for 2 years. The director from Manchester, appeared at Manchester crown court on Friday 24th June 2022 where he was sentenced to 24 months. 

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The Insolvency Service said, this sentence should serve as a warning to others and they should come clean and repay the money before it is too late. The terms of the Bounce Back Loan are clear that funds could only be used for business purposes and not for personal use. 

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Bounce Back Loans and Personal Liability

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There will always be a full investigation into the whole business, the finances and all the directors’ conduct so that any issues will be uncovered. Therefore, the directors’ personal liability will only change in the event of evidence that the loan has been misused against the rules laid out for them, which will be uncovered during the investigation.

Some circumstances were a director may be made personally liable for the bounce back loan are:

• Applying for the loan fraudulently

• Falsifying turnover when applying for the bounce back loan

• Paying the Bounce Back Loan to themselves personally

• Paying off finance and loans they had personally guaranteed

• Buying new cars, buying property or putting an extension on their house! We know you probably already know this last one but we thought it was worth pointing out again for the avoidance of doubt.​​