3 April 2023: For any quiz fans out there, do you know what the following phrases have in common ‘Luke, I am your father’, “Why, hello Clarice”, “Toto, we’re not in Kansas anymore” and “bounce back loan applications may be based on projected turnover figures”?
As you may have guessed, the common thread is that all of them (including the article title) are misquotations. All representing examples of the ‘Mandela Effect’ i.e. the phenomena of a collective misremembering of a well-known phrase, saying or cultural moment, resulting in the true version being largely forgotten.
Of the above examples you will not be surprised that of interest to us is the statement regarding bounce back loans. It appears that there is now a commonly held misconception that bounce back loan applications could be made and supported based on projected turnover figures.
Unfortunately, for some directors, a review of the conditions applicable to a bounce back loan, reveals they make no reference to projected turnover figures being an acceptable basis for calculating the value of the applied for bounce back loan. The confusion in this instance may stem from the allowance that was given to start-up companies, which may have not yet had finalised turnover figures, being allowed to enter estimated turnover for the first year of trading (which would have commenced in 2019).
However, the allowance of turnover estimates for start-up companies is obviously somewhat different to established companies basing their loan application on projected turnover. Especially with the criteria for bounce back loan applications being centred on a company’s current solvency.
With possible penalties ranging from fines and compensation orders right through to custodial sentences. Here at BRI we are equipped to have those difficult conversations with directors to outline the issues at hand if incorrect bounce back loan applications have been made. As we promise to offer the right advice first time every time regardless of the fee outcome for ourselves and however difficult it may be to hear.