Blackburn director banned for nine years after BBL breach

Rashid Hussain, 57, of Tintern Crescent, was investigated by the Insolvency Service after breaching the terms of the Government-backed Bounce Back Loan (BBL) scheme for his business ZIB Haulage Ltd.

The carrier company overstated its application for a BBL, resulting in the company receiving £50,000, despite not being entitled to it.

During the pandemic, the BBL scheme allowed businesses to receive a loan of up to 25 per cent of their annual turnover for the 2019 calendar year, which was self-certified.

If a company was established after that date, they were allowed to estimate the company turnover from the date the company started to trade.

ZIB was incorporated in May 2018, and Mr Hussain declared that the company’s annual turnover was £200,000.

Consequently, in June 2020, ZIB received a £50,000 loan, the maximum available under the BBL scheme.

However, bank statements for 2019 show the business income of £99,358, which would have meant ZIB was entitled to apply for £24,840.

The overstatement meant that ZIB had received at least £25,160 more than it was entitled to from the BBL scheme.

A total of £17,127 was paid back for the loan.

In March 2025, ZIB entered voluntary liquidation, and at that date the company had liabilities of  £38,433, of which £35,433, was owed to the bank in respect of the BBL.

Dave Magrath, Director of Investigation and Enforcement Services, said: "Covid-19 financial support schemes were funded from the public purse to support genuine businesses during the pandemic.

“Directors who abused the scheme have exploited taxpayers.

“The Insolvency Service will act to remove directors who abused Bounce Back Loans from the business arena.”

Mr Hussain was banned for nine years from May 18.