Bellas Ice Cream in Southport director banned for 10 years after false £50k bounce back loan

Mrs Belinda Bakerman, caused Bellas Ice Cream Ltd, (“BIC”) to obtain a £50,000 government-backed Bounce Back Loan (“BBL”) on 19 May 2020, which was more than BIC was entitled to, by providing information to the lender which she knew or ought to have known was inaccurate.

Mrs Bakerman then caused BIC to utilise the proceeds received contrary to the terms of the BBL scheme in providing no economic benefit to BIC, in that between 08 and 23 June 2020, £32,083 was paid into an account held by an associated limited company, the director of which is a relative of Mrs Bakerman.

No evidence has been provided to show this was for the economic benefit of BIC: In that: The application form for the BBL stated, “You can apply for a loan which is up to 25% of your turnover in calendar year 2019, from a minimum of £2,000 up to a maximum of £50,000. If your business was established after 01 January 2019, you should apply the 25% limit to your estimated annual turnover from the date you started your business”. BIC was incorporated on 17 December 2018, but in her questionnaire returned to the Insolvency Service signed and dated 09 August 2022,

Mrs Bakerman stated that BIC began trading on 25 March 2019. Accounts for the year ending 31 December 2019 record turnover at £52,743. Bank analysis shows receipts of £31,663 from 25 March 2019 to 24 March 2020. On the BBL application form, signed by Mrs Bakerman on 17 May 2020, BIC’s turnover was declared at £200,000 and a £50,000 BBL was applied for. Mrs Bakerman, in her questionnaire abovementioned, stated that the turnover declared was based on projected turnover with plans to move into a café style business. With 17 December 2018 being the date of incorporation, and 25 March 2019 commencement of trading, she was not entitled to do this.

In a letter from the Insolvency Practitioner dated 17 February 2023, it states that ‘the director has accepted that the turnover was overstated in the BBL application’. BBL funds of £50,000 were deposited into BIC’s bank account on 19 May 2020, leaving a credit balance of £54,823.78. Between 08 and 23 June 2020, £32,083 was paid into an account held by an associated limited company.

No evidence has been provided to show this was for the economic benefit of BIC, as required. At liquidation on 25 October 2021, £49,000 of the £50,000 BBL remained outstanding.

Bellas Ice Cream was at 431 Lord St Southport