A company director has been banned after he was found to have applied for a government loan worth tens of thousands of pounds he was not entitled to.

Over several months jewellery firm Infinity Bracelet and Co, based on Bark Street in Bolton town centre, received just over £39,000 it was not entitled to from “bounce back loan scheme".

According to the Insolvency Service, director Jay Blades, 29, caused the company to make applications that it was not entitled to, which he should have known.

A statement said: “Between May 10 2020 and November 13 2020, Jay Blades caused Infinity Bracelet & Co Ltd to make bounce back loan applications for a total of £50,000 which it was not entitled to, and when he knew, or ought to have known, that the company’s turnover did not support an application for that amount in that.”

The government’s bounce back loan scheme had been launched in 2020 to help smaller businesses survive during the pandemic.

The Insolvency Service says the loans had been misusedThe Insolvency Service says the loans had been misused (Image: PA)

It allowed them to borrow between £2,000 and £50,000 at low interest rates, which would be guaranteed by the government, to support them through the lockdown periods.

But the rules say that the business must apply for a loan that is subject to a maximum of up to 25 per cent of its turnover.

The Insolvency Service says Blades, whose last known address was in Havant in the south of England, signed a declaration wrongly saying the Bolton company’s turnover was £290,000.

The statement said: “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 January 2019 1 it is their estimated turnover.

“The company was incorporated on 16 April 2015, and was trading at 01 January 2019, thus not entitled to estimate its turnover.

“On 10 May 2020, Jay Blades signed a wrongful declaration by stating the company’s turnover as being £290,000.

“The £48,000 BBL funds were received into the company’s bank account on 12 May 2020

“Additional BBL funds of £2,000 were received into the company’s bank account on 13 November 2020.

ALSO READ: Car parts company boss banned after 'misusing' £10,000s worth of bounce back loan

ALSO READ: Bolton-based business abused bounce back loan scheme

ALSO READ: Ban for wine business boss after Covid loan given to firm 'not entitled' to it

“The turnover for the 2019 calendar year was calculated, from those bank statements, to be £43,986.86.

“The level of BBL funds to which the company would have been entitled was £10,996.

“As a result, the company received BBL funds of £39,004 to which it was not entitled.” 

Blades was banned from running companies for nine years, starting from September 3 this year.

According to Companies House Infinity Bracelet and Co started winding up on March 30 2023 and is due to be dissolved in October 3 this year.