In excess of 100,000 small business Bounce Back loan applications hit banks in the first 24 hours of the scheme being opened. This demonstrates the need for cash injections into the smallest companies in the country to support them and get them back to work.
With loans offered at up to 25% of your annual turnover, ranging from £2,000 to £50,000, the average loan applied for in the first day of operation settled at about £30,000. This means small business Bounce Back loan applications totted up to about £3.3 billion in a day, somewhat confirming the suspicion that Coronavirus Business Interruption Loans weren’t working for small businesses – only about £4.1 billion has been loaned under Coronavirus Business Interruption Loans up to the end of April.
While the small business Bounce Back loan application process is simple, only a few have already received the funds although it’s a good sign that the money has started to flow. The sheer volumes of those that applied in the first 24 hours means that it will take some time to process applications but the cash should be in your bank account within 24 hours of your loan being approved.
Some banks, Barclays in particular, have been criticised that their systems failed and that it was impossible to submit a small business Bounce Back loan application. The bank has said that there was no failure but they were simply deluged with applications which has resulted in some having to wait to apply.
While the small business Bounce Back loan is very easy to apply for, bear in mind that this is a loan not a grant and the funds will have to be repaid. There will be nothing to pay for a year as the government will pay the interest, but with loan periods of up to six years and an, albeit very low, interest rate of 2.5%, you should only borrow sufficient funds to see you through the pandemic and request an amount that you will be able to afford repayments on.
Once you have decided what loan amount you require, the small business Bounce Back loan application process is very simple asking only for basic business information. There will be no examination of your business by the bank (other than basic fraud checks) and they will not be examining the viability of your business and ability to repay the loan. It’s pretty much been accepted by the government that your business will have been severely disrupted and the small business Bounce Back loan is intended to help you get back on your feet, not be a barrier to a cash injection at the time you need it most.
45 Responses
It would be intgeresting to see a “performance chart” of which banks are processing applications and providing funds quickly – and those that aren’t.
Santander are quoted as saying they have had applications from 18,000 businesses that requires funding of £130,000,000 and that the applications average £30,000.
I’m not clever but if you do the maths …this equates to just over £7,000 per application !
Yet, they had still only given loans out of £7.5 million
These main stream banks are not fit for purpose. Utterly disgraceful lack of funding , even when they have total indemnity, risk free guarantees from the State.
I do hope that the next time a major bank stands on the brink that the tax payer/government remember this and instead of using our hard earned to bail them out , allows them to go out of business.
The banks In the U.K. disgust me !
I applied with Lloyd’s on the 1st day at 09:11 and received the automated ‘We are pleased to offer you the loan subject to our checks”
Media reports stated that Lloyd’s had had 2;000 applications in the first 2 hours and later reports suggested they had had 17,000 applications by the end of the 1st day.
However a press release put out by Lloyd’s for Tuesday morning proudly proclaimed they had processed and paid out 32,000 loans applied for.
So 17,000 from the 1st day plus 15,000 on top?????
Yet despite probably being amongst the first couple of thousand applicants, as of today (Wednesday) being the 3rd day, I still await my loan or reasons as to why it is not forthcoming.
I emailed the author of the Press a Release for comment, but have had no response from him as yet.
Don’t believe the hype and are any other Lloyds customers still waiting from Monday for their loans to be processed?
We wonder how all these loans will be repaid
With a retail sales time bomb ticking
Does anyone know if you have to apply through your business bank or can you apply through any government recognised lender? The reason I ask is that we were leaving our bank (TSB) just before the crisis hit and we want absolutely nothing else to do with them.
Applied on Monday evening with LLoyds.
So far only received 1 email: “We are pleased to offer you a loan, subject to checks […]”.
No new correspondence as of today. The original email has no any time scale either.
Thanks Simon much appreciated
My sister applied through Nat West on Monday, has received an approval notification today and should receive the funds in the next 24 hours.
My brother applied through Lloyds yesterday and received funds today.
I applied through Yorkshire Bank first thing Monday and despite a number of emails to my Business Development Manager am no closer…
What I do know though, is that when it is done and dusted I will be seriously considering whether to keep my business banking with an organisation that appears to still use quills and parchment!
Lending to marketplace sellers without sorting the ‘ China Problem’ is insane. Total waste of government money, most were on the ropes anyway. The loan might give them another round or two, but that’s about it.
Lending to Marketplace sellers is insane. Without sorting out the ‘China Problem’, most were on the ropes anyway, this might give them another round or two, but that’s about it.
Having applied to Yorkshire Bank on Monday 4th, I still have had no communication beside the standard text every couple of days advising they are in receipt of large amounts of applications as are processing as quickly as they can. Eight days and counting. The silence is deafening!
Applied with TSB last Tuesday morning, now 8 days later had nothing, not even an acknowledgement email or text message, been calling them four last 3 days and cannot get through to speak to anyone, no wonder they have been name
The Sh** Bank!
Can anyone help please?
I applied yesterday ( Wednesday 20/05 3:48pm) recieved an email to say we are pleased to offer you a loan subject to check, etc. Now Thursday is here but nothing. Do I receive an email to say they are paying me? Or they have paid me? Does any one know. Or perhaps I’m not getting one……
thanks in advance
Now been 17 days since application with TSB, not heard a bean from them, no email or phone call, chased up several times and been told they have received the application!
Any wonder why some call it The S**t Bank!
i have applied with HSBC on the 11th and received an acceptance letter with contract that i have signed till today 10 days later still nothing in my account but heard other people from other banks we’ve applied on the same date received theirs. So i am a bit worried.
Someone please for the Love of Jesus, did you get further correspondance after the email saying ‘we are pleased to offer you a loan subject to checks’? Does anyone know what the checks are? Im talking to you Lloyds people.
Please and Thank you
I also applied with Lloyds but it was only on Friday and with the weekend and bank holiday I dont think much would have happened. Anyway, I would also like to enquire from those that applied with Lloyds, wether they got any further correspondence after the “..pleased to offer you a loan..” one or was it a case of checking your account until you saw a deposit?
I am one of the impatient ones. I just want to know wether this letter is “it” or there will ve another one?
Thank you
I applied through Yorkshire Bank three weeks ago, apart from the initial ‘we have received your application’ followed up with ‘we need to make further checks’ I have not heard a thing
Thanks Nigel for your response! I am feeling more positive now. Hopefully tomorrow I will have a response
I chased it up, I was turned down because of lack of activity in my account recently, of course there is a lack of bloomin activity I have not had orders!!!! I can appeal if I want by sending a begging letter and they will forward my complaint of being left here sitting for three weeks with no communication at all, apparently i should have received an email, well I didn’t! I am fuming. I have now received some orders and have NO funds to buy the materials to fulfil the orders.
I applied through Lloyds on Saturday ( 23rd May) and just got the usual we are pleased and still waiting for the outcome. Please, can any one educate me well on the 25% turnover rule, Is it based only on 2019 year? or there are other determinants. what I put in was more than my turnover. Any advise on this.
Nigel the woman specifically said ‘we have been given a list (of I assume criteria) by the government and you don’t qualify due to lack of activity on your account’ I am beyond fuming, I have applied for a business account elsewhere lets see how I get on with that one.
I wonder if loan refusal has affected anyone’s credit status ?
Pam who turned you down ?
Laura Yorkshire Bank
I applied 4 weeks ago now and still had nothing, not even an acknowledgement email from TSB. Waited over an hour on phone today before getting through and told the same old bulls**t that it is being processed!
Can anyone recommend another business bank to open an account with so that I can f**k TSB off once and for all?
They truly are The S**t Bank