A director of a children's sports coaching company has received a lengthy ban after it emerged he exploited a Covid loan scheme.

Shafiqur Rahman established Aspire Sports Coaching & Partners Limited in January 2018 and was the only person listed on Companies Houses as having significant control over the management of the company.

However, the Insolvency Service disqualified the 25-year-old this month for more than a decade after the liquidator discovered he had exploited the Bounce Back Loan scheme.

The loans were made available for businesses as of May 5, 2020, to help companies recover from the economic damage brought on by pandemic lockdowns.

They were granted from £2,000 up to a maximum of £50,000 and based on 25 per cent of a company's annual turnover.

Aspire's annual turnover accounts, approved by Mr Rahman, show the company made £1,195 and £2,488 in January 2019 and 2020 respectively.

This meant the business was entitled to a maximum loan of £2,000 yet Mr Rahman made an application for £25,000.

The Insolvency Service stated in its case details that Mr Rahman "knew or ought to have known" that the turnover information he provided for the loan application was false.

It goes on to say that on July 30, 2020, £20,000 from the loan was paid from Aspire's bank account to a third party with the payment reference 'car' on the bank statement.

Just over two weeks later, Mr Rahman established Oldham Inspiring Youth, a youth charity in the borough.

In a bid to explain the missing £20,000 from the Bounce Back Loan funds for Aspire, Mr Rahman emailed a copy invoice to the liquidator, purportedly from a third party in respect of a business expense.

This was also found to "appear[s] to have been falsified".

The Insolvency Service concluded: “The payment of £20,000 does not appear to have been for the economic benefit of Aspire, and as such, was made contrary to the terms of the BBL scheme.”

Mr Rahman has now been disqualified from acting as a director or running any companies for 11 years as of October 11.

Aspire Sports Coaching and Partners Limited was dissolved on October 5.

The Charity Commission confirmed that Mr Rahman is automatically disqualified from his role as chairman at Oldham Inspiring Youth in accordance with section 178 of the Charities Act 2011.

The spokesperson explained: "If a person is disqualified as a company director then they are automatically disqualified as a charity trustee and cannot be the chairperson of a charity."

Mr Rahman has been approached for comment.