The Insolvency Service is continuing its work with lenders to investigate Bounce Back Loan misuse, and has shared information on a recent case involving a printing company, Genesis Web Limited.
Prashant Jobanputra, the sole director of printing company Genesis Web Limited, applied for two £50,000 Bounce Back Loans in July 2020. During interviews, he claimed that the company had been severely impacted by the pandemic, that he hadn’t properly read the loan agreement, so he was unaware that applying for more than one loan was prohibited.
The second application was flagged by the lender. In January 2026, he received an 18‑month suspended prison sentence, a £5,000 fine, and a three‑year director disqualification.
Did Bounce Back Loans actually help?
For most businesses, Bounce Back Loans did provide the essential financial support they needed to cover wages and other day-to-day costs. However, for others, it’s possible that the loans simply postponed financial difficulties that were already emerging.
Because the scheme was launched so quickly without time for proper checks, some risks could not be fully planned for, and the opportunity for fraud was to be expected. Although the fraudulent applications are a minority of cases, lenders and investigators are still taking a closer look at older applications as part of their ongoing review work.
What lenders and regulators are checking
Even where a director acted honestly at the time, lenders and regulators are reviewing:
- Whether the application information was accurate
- Whether the business was eligible for the amount claimed
- Whether the funds were misused for personal purposes
By April 2025, 736 directors had been disqualified for misusing Bounce Back Loans.
What happens if a director is struggling with repayments
If a director is worried about repayments, it might be helpful to have a review of the original loan documents and look into how the funds were used. Identifying inconsistencies or signs of financial pressure early means they may have more options before needing to consider insolvency.
Exigen can help by:
- Setting out realistic restructuring or liquidation options if repayments are becoming unmanageable
- Helping prepare information for lenders or regulators
- Managing formal insolvency processes if they become necessary
We work with directors to give them clear and honest guidance about their options and help them address issues before they escalate.