Major UK banks received around 100,000 applications for the new ‘bounce back’ loan scheme on the first day of the loan went live to businesses.
The government-launched scheme offers loans up to £50,000, and is designed to cover loopholes that exist in the Coronavirus Business Interruption Loan Scheme (CBILS).
As part of the scheme, small businesses can borrow between £2,000 and £50,000. The government will provide lenders with a 100% guarantee and cover the cost of any fees and interest for the borrower for the first 12 months.
The loan can be provided within 24 hours of its application, and there is a flat interest rate of 2.5%.
Barclays reportedly received 35 loan applications per minute when the newly-launched scheme first went live yesterday morning.
The bank’s UK chief executive, Matt Hammerstein, told a House of Commons committee that Barclays also received 200 applications within minutes of the emergency scheme opening at 9am.
Lloyds Banking Group said it received the most with 17,000 applications so far, with 5,000 applications within three hours of the scheme going live.
David Oldfield, group director and chief executive of commercial banking at Lloyds Bank, said: “We expect significant volume through the bounce back loans.
“The whole scheme is built around simplicity, so there’s a simple two or three page online application that asks for business details, turnover and amount being requested.”
As of last night (4 May), HSBC received 12,830 applications, whilst 10,000 applied to NatWest.