A former takeaway owner claimed a £50k Covid loan his business wasn’t entitled to and now faces restrictions.
Li went bankrupt in June 2024 and still owed all that loan money. The person who handles bankruptcies looked into it. Silver Sea didn’t trade long enough to get the loan, as the rules said it must have been trading earlier.
Someone at the Insolvency Service spoke about it, stating the loan helped businesses at a hard time. Li misused this support by asking for the most money possible. His business should not have received it.
The Insolvency Service wants to punish those who misuse funds. They secured restrictions for Li to protect people. These restrictions affect his business dealings and limit other financial activity.
He applied for the loan on June 15, 2020. On the application, he said Silver Sea traded on March 1, 2020, which was a requirement to qualify. However, before applying, he signed a paper stating trade began May 17, 2020.
Li signed a Bankruptcy Restrictions promise and agreed he got a loan he didn’t deserve. He knew his business did not meet the March 1st deadline and understood the scheme’s rules.
He accepted limits on finances and business, extending his bankruptcy by nine years. Usually it ends after only a year. He needs permission to be a company director and cannot hold certain public roles at all. Borrowing over £500 requires him to disclose his restrictions.
The government accepted his promise on January 28. Li will have these restrictions until January 27, 2034.
The Silver Sea takeaway still runs today, but new owners now manage the business. The authorities are still looking into getting back the loan money.