69000 loans approved in first day of Bounce Back scheme

New lenders approved for emergency loan scheme

New lenders approved for emergency loan scheme

UK-based banks have received around 100,000 applications in a single day after The Bounce Back Loans scheme for small businesses was released.

The number of applications surged to more than 200,000 by Tuesday evening, according to a Guardian tally of individual lenders. Bounce Back Loans are created to help thousands of small firms get finance quickly during the coronavirus crisis at a low, affordable rate and with a 100 percent Government-backed guarantee. The government has said it will cover the 2.5% interest on the loans for the first 12 months.

"These loans will help them bounce back from this crisis - getting money fast - so it's great to see close to 70,000 businesses benefitting in just the first day", chancellor Rishi Sunak said in a statement.

"These nine newly accredited lenders for CBILS will be able to deploy vital funding and get additional finance flowing to smaller businesses across the United Kingdom as quickly as possible".

The "Bounce Back" scheme was launched after criticism of the government's flagship business support measure, coronavirus business interruption loans (CBIL).

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According to the latest data, United Kingdom lenders have received 52,807 formal CBILS applications and approved 25,262 CBILS loans worth £4.1bn since that scheme's launch on 23 March.

This bounce-back rate is likely to be lower than most CBILS as they are less risky. Thus, the loans are not meant to bail out failing businesses. The loans will be easy to apply for through a short, standardised online application.

"North Down Physio is just one of our Northern Ireland business customers which applied for the scheme and had the funds transferred into their account in less than two working days".

"Unfortunately, we are hearing reports that bounce-back application forms are hard to access or inquiries are simply being acknowledged with a "We'll call you" message and nothing further", he said.

"All businesses should consider carefully their repayment obligations before completing a Bounce Back Loan application".

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