Southampton nursing agency boss given 11-year ban for Bounce Back Loan abuse

Selvendran Ramar, 35, from Southampton, has been disqualified as a director for 11 years after he wrongfully obtained a £45,000 Bounce Back Loan in July 2020.

Mr Ramar was sole director of SJSA Ltd, which claimed to provide temporary nursing staff to hospitals, mental health services, care homes, and residential homes. It was incorporated on 30 March 2020.

Under the Bounce Back Loan scheme, genuine businesses impacted by the pandemic could take out interest-free taxpayer-backed loans of up to £50,000. However, businesses had to have been trading prior to 1 March 2020 in order to qualify for funding through the scheme, meaning SJSA Ltd was not eligible.

In addition, Mr Ramar overstated the company’s turnover to secure the Bounce Back Loan, confirming the company’s annual turnover was £180,000. In reality, in the first three months of trading, the company had received just £5,500 in income.

On receipt of the Bounce Back Loan, Mr Ramar transferred £35,000 to his personal account from the business and the remaining £10,000 to a family member.

SJSA Ltd went into liquidation in September 2021, which triggered an investigation by the Insolvency Service. At the point of liquidation, the £45,000 Bounce Back Loan was the entirety of SJSA Ltd’s declared liabilities.

The liquidator has recovered £25,000 of the Bounce Back Loan.

The Secretary of State for Business, Energy and Industrial Strategy accepted a disqualification undertaking from Mr Ramar, after he did not dispute that he caused SJSA Ltd to obtain a Bounce Back Loan that it was not entitled to. His ban is effective from 7 December 2022 and lasts for 11 years.

The disqualification undertaking prevents him from directly, or indirectly, becoming involved in the promotion, formation, or management of a company, without the permission of the court.