Banks hand out £2bn in bounce back loans in 24 hours

Rishi Sunak revealed that the seven largest lenders – Barclays, Danske, HSBC, Lloyds, RBS, Santander and Virgin Money – received more than 130,000 applications for the Treasury’s Bounce Back

Loan Scheme on Monday. Bounce Back Loans are designed 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. Mr Sunak 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. “It’s vital this speedy progress continues in the

days and weeks ahead.” The Bounce Back Loan scheme is one part of the Government’s package of business support that includes £8billion to pay the wages of “furloughed” staff at 800,000

firms, £8.6billion in business grants, the suspension of business rates and deferral of VAT payments. Stephen Jones, the chief executive of the banking industry representative body UK

Finance, said: “Bounce Back Loans form a key part of support measures put in place by the government, working with the banking and finance industry to help businesses through these difficult

times.  “This scheme gives smaller businesses including sole traders rapid access to debt finance if they need it. “Bank staff have been working flat out since the scheme launched on Monday

morning to process applications and get money out to eligible borrowers and these figures are testament to their hard work and the commitment of the industry to support businesses of all

sizes. “While businesses only need to fill in a simple form online to apply, it’s important to remember that this type of finance is debt, not a government or bank grant, and will need to be

repaid by the borrower over the six year term of the loan.  “All businesses should consider carefully their repayment obligations before completing a Bounce Back Loan application.  “Under

the terms of the scheme lenders are required to seek to recover any unpaid interest and principal on Bounce Back Loans from borrowers.”