Bounce Back loans worth £2 billion approved in a day

• Pramod Thomas
• 06 May, 2020

By: Pramod Thomas

THE Bounce Back Loan scheme has become an instant hit as more than 69,000 applications worth over £2 billion was approved on 4 May, the first day of the scheme, the chancellor said. As many as 130,000 requests for credit have been received on day one.

These special loans are helping thousands of small firms get finance quickly at a low, affordable rate and with full government-backed guarantee.

The seven largest lenders such as Barclays, Danske, HSBC, Lloyds, RBS, Santander and Virgin Money have received more than 130,000 applications, and they are working hard to process as quickly as possible, an official statement said.

“Small businesses will be the driving force of our recovery from the pandemic, creating jobs and securing economic growth. 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,” said the chancellor Rishi Sunak.

“It’s vital this speedy progress continues in the days and weeks ahead.”

The scheme is part of the government’s business support. The package also provides £8 billion to pay the wages of furloughed staff at 800,000 firms. Around 700,000 business properties are benefiting from £8.6 billion of business grants, generous VAT deferrals and scrapping businesses rates, a statement said.