We are neither Insolvency Practitioners (IPs) nor Solicitors and do not advise on such matters, and as an Insolvency Practitioner you might want to check with your compliance officer on the following:
By way of comment, we have heard through the grapevine that some IPs have been told that they are obliged to report to the National Crime Agency (NCA) any business that they are acting for in an insolvency capacity that borrowed through a Bounce Back Loan which was also a “businesses in difficulty” on the 31st December 2019.
However, the attached is the British Business Bank page regarding the criteria set for Bounce Back and CBILs loans and it sets out the following, with regards to Bounce Back loans:
Page 2 specifically states (referring to Bounce Back loans) in the paragraph commencing “The application form also requires confirmations to be given …. “ that “lenders will not assess affordability”.
Page 6 in the “Assessment of Affordability and Viability” section that CBILs cannot be given to “businesses in difficulty” as defined therein
Bounce Back Loans specifically says “lenders do not have to assess a business’ affordability or viability”.
There does not appear to be too much ambiguity, but thoughts are welcome.
The British Business Bank page can be accessed HERE