Former owner of Gillingham takeaway sanctioned for £50,000 Covid loan abuse
Source: gov.uk (2025-02-13)

Former owner of Chinese takeaway in Kent claimed maximum loan for business which was not eligible for any money

- Zhongqing Li claimed a £50,000 Bounce Back Loan for his Chinese takeaway despite the business not being eligible for the scheme
- The Official Receiver uncovered the abuse of the loan after the takeaway owner became bankrupt.
- He is now subject to nine years of sanctions which prevent him acting as a company director
The former owner of a Chinese takeaway in Kent is subject to stringent sanctions after taking out a £50,000 Bounce Back Loan during the Covid pandemic when the business was not entitled to any money under the scheme.

Zhongqing Li, 55, from Parkwood Green, Gillingham, applied for the loan in June 2020 to support his Silver Sea takeaway, which also traded from Parkwood Green.

Li became bankrupt in June 2024, owing the full amount of the loan.

The Official Receiver, whose duty includes investigating the cause of a bankruptcy, discovered that Silver Sea had not been trading within the required timeframe to have been eligible for a Bounce Back Loan.

Samantha Crook, Deputy Official Receiver at the Insolvency Service, said:

The Bounce Back Loan scheme was designed to help keep existing businesses afloat during a time of crisis for the country.

Zhongqing Li abused this vital support by claiming the maximum amount possible for a business that was not entitled to receive a loan under the terms of the scheme.

The Insolvency Service strives to secure the toughest sanctions for those who abuse public money, and we are pleased these lengthy restrictions will curb Li’s business and financial activities to help protect the public from further harm.

Li made a loan application on 15 June 2020 in which he stated that Silver Sea had been trading on 1 March 2020 – the date businesses had to have been trading to qualify for a loan under the rules of the scheme.

But the Official Receiver discovered that the day before he applied for the loan, Li had signed a VAT registration form saying the business had only begun trading in the previous month, on 17 May 2020.

The Official Receiver secured a Bankruptcy Restrictions Undertaking (BRU) from Li, in which he did not dispute that he had obtained a £50,000 Bounce Back Loan to which he was not entitled because he was not trading on or before 1 March 2020, as required by the terms of the scheme.

He agreed to abide by sanctions that restrict his finance and business activities, and extend the original terms of his bankruptcy – usually a 12-month period – for another nine years.

The restrictions prevent him acting as a company director without permission from the court, and from holding certain roles in public organisations. He is also prohibited from borrowing more than £500 without declaring he is subject to the sanctions.

The Secretary of State for Business and Trade accepted the undertaking from Zhongqing Li on 28 January 2025. He will be subject to the restrictions until 27 January 2034.

The Silver Sea takeaway continues to trade under different owners.

The Official Receiver continues to make enquiries into possible recovery of the money.

Further Information
- Zhongqing Li is of Parkwood Green, Gillingham. His date of birth is 14 July 1969.
- Further guidance about Bankruptcy Restrictions Orders and Undertakings (https://www.gov.uk/government/publications/bankruptcy-restrictions-orders-and-undertakings/bankruptcy-restrictions-orders-and-undertakings)
- Details of BRO and BRU restrictions relating to individuals can be found on the Individual Insolvency Register (https://www.insolvencydirect.bis.gov.uk/eiir/)