Using the bounce back loan

Natsplus

Hi All,

I have received BBL for my limited company, half of the BBL I am investing to help the business running, I am thinking of using some of the left over money to invest in starting another business under my current limited company, to give it a boost and to hopefully make it very easy to pay back the loan.

My question is, am I allowed to help my business by making it diverse and using my BBL for that? What is that business does not succeed, and my company goes down, will that be considered an acceptable use of BBL?

Thanks

Jeremy535897

It should be OK. Check the company's articles of association permit it. They almost certainly will, but best to be sure.
The BBL FAQs say:
"The business must confirm to the lender that the loan will only be used to provide an economic benefit to the business, for example providing working capital, and not for personal purposes."

The wording isn't 100% clear, but "business" here seems to refer to the limited company that carries on a trade, not the existing trade in the limited company, because that cannot confirm anything. Only the officers of the limited company can confirm something to the lender.