Barclays has approved more than 32,000 “rebound” loans since the program began yesterday.
Yesterday, the bank said it received 35 loan applications per minute when the government launched the new program.
Barclays UK chief executive Matt Hammerstein told a House of Commons committee the bank received 200 requests within minutes of opening at 8 a.m.
The new loan program offers smaller businesses in the UK loans worth 25 per cent of turnover, up to £ 50,000. The loans are 100 percent guaranteed by the government.
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Earlier today, Lloyds said more than 32,000 of its smaller business clients applied for a rebound loan on Monday, totaling more than £ 1 billion. HSBC also said it received 34,500 requests as of 4 p.m. yesterday and agreed to lend £ 650million.
The wave of activity contrasts sharply with the CBILS program, under which the government guarantees only 80 percent of loans.
Last week, 25,000 loans worth £ 4.1 billion were made through CBILS after it opened on March 23. However, small businesses said they found they were excluded due to inconvenient application processes and strict criteria.
Chancellor Rishi Sunak introduced the rebound loan program to iron out these issues, offering a streamlined online application process.
Barclays approved 4,351 CBILS loans totaling £ 835 million as of April 28 and introduced 12-month principal repayment holidays on existing loans over £ 25,000.