Share:
POST
TWEET
SHARE
SHARE
EMAIL

100,000 Small Business Bounce Back Loan applications in 24 hours

By Chris Dawson May 5, 2020 - 1:09 pm

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.

  • Nigel S
    1 month ago

    It would be intgeresting to see a “performance chart” of which banks are processing applications and providing funds quickly – and those that aren’t.

    • Chris
      1 month ago

      The banks have complete immunity from risk with these loans and yet they are still failing to issue the money. By their own admission Santander have had applications for over £130,000,000 of loans and yet have only paid out £7.5 million
      They promised that once they approve the loan, the payment would be made within 24 hours, I called them today and they are now saying they won’t be paying out within 24 hours and they are reviewing the rules !
      Time after time the main stream banks prove themselves inadequate, …and unsupportive of British business… even when they have no risk whatsoever, it clearly seems that even the U.K. Government is not a good enough guarantor for these leeches.
      I do hope that the next time one of them has a run on their bank that the tax payer sticks two fingers up to them !

  • Chris
    1 month ago

    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 !

  • Simon
    1 month ago

    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?

    • 1 month ago

      I know of at least one marketplace SME who applied with Lloyds and was paid out by lunch time yesterday – within 30 hours of the scheme opening.

    • Darren
      1 month ago

      We applied with Lloyds early Monday morning, I think about 7.30am, and the money was paid yesterday afternoon.

      No one can suddenly magic new staff to process applications in the volume they are getting, just be patient – at least give them a few days. I know Barclays have no yet paid another business who applied Monday morning.

      We need to understand these banks have a gigantic workload.

    • Simon
      1 month ago

      Just an update – the money came through today (Wednesday) Mid-Afternoon.

    • Millie
      2 weeks ago

      Hi Simon. Did you receive any email.to say they have paid you or they are. Or did the money just appear.
      Thanks

  • Jim
    1 month ago

    We wonder how all these loans will be repaid
    With a retail sales time bomb ticking

    • Nigel S
      1 month ago

      I maybe coming at this from completely the wrong angle but I assume by “retail time bomb” the inference is that retailers will be in the “brown, sticky stuff”?
      And yes, I am sure some retailers will be (and probably are) looking at the BBLS as “free cash”, depspite the fact that there will (of course) be implications should the loan not be repaid but hey, if it can be kicked down the road for at least a year…
      However, I also think there is a reservoir of cash building up in bank accounts, simply because people have nothing to spend it on – after all how many times can you paint a bedroom or mow the grass?
      Simply not having to pay travelling costs to get to work must be saving people a fortune (I wonder if they are giving refunds to those with monthly/annual season tickets???).
      I have no idea what the figures are but it would not surprise me in the least to discover that online retailers are having a field day. I know of at least one large High Street brand that has (anecdotally) bolstered its online presence to take advantage of it.
      From a personal point of view, I have a relative who operates a classic car and motorbike sales business. He cannot remember a time when he has been busier – and it has all been done online, while strictly observing social distancing rules during collection and delivery.
      So yes, there *may* be a time bomb ticking under retail but with the right preparation and planning (remember “The Six Ps”), that bomb can be turned into a cash explosion!

      On a different note: I submitted a BBLS application to my bank (Yorkshire) first thing on Monday morning and, apart from an email acknowledging its receipt and saying a “response might be delayed”, have been deafended by the sound of silence…

    • Jim
      1 month ago

      The bomb has already exploded ,
      the succession of shock wave ripples have not hit yet

  • Jonah
    1 month ago

    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.

    • Simon
      1 month ago

      As far as I am aware, the only Bank accepting applications from Non-Existing Customers is HSBC but I believe priority is being given to their own customers.

      The otter High Street Banks are accepting applications from their own Business Customers who they already have a relationship with.

      Fintech Bank Starling I believe is coming on board soon and others to follow once accredited.

  • NorthCrystal
    1 month ago

    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.

  • Jonah
    1 month ago

    Thanks Simon much appreciated

  • Nigel S
    1 month ago

    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!

    • Jonah
      1 month ago

      Nigel their carrier pigeon system is down, the documents are lost on the horse and carriage that took a wrong turn on the village turnpike!! 🤣

  • ifellow
    1 month ago

    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.

  • ifellow
    1 month ago

    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.

    • Alan Paterson
      3 weeks ago

      @ ifellow, its very naive to assume that every category is effected by what you are calling “the China Problem”.

      It is not a universal problem on the marketplaces.

  • Craig Wright
    3 weeks ago

    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!

    • Nigel Streeter
      3 weeks ago

      Same here… nothing but banal text messages and deafening silence.
      No further comms from my Business Development Manager since an email saying that, as I had raised points of complaint, he would forward my message to the Complaints Department, who would contact me…. NPMSL!!!
      I have also written to my MP, who has offered to contact the Bank’s Public Relations to see what they have to say but, to be honest, I can’t bring myself to waste her time, she has enough to do as it is.
      On a different note, I opened a Business Account with Starling Bank last Wednesday and, although I had to wait for the Debit Card to turn up before I could apply, I completed a BBLS application yesterday – just four (if my memory serves me right) questions, not the 20-odd that Yorkshire posed.
      I haven’t had an acceptance yet but fully expect to do so before hearing anything further from Yorkshire Bank’s BPU (Business Prevention Unit)!

  • sam
    3 weeks ago

    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?

    • Nigel Streeter
      3 weeks ago

      As I mentioned before, I applied for a Starling Bank Business Account last week, which was opened within 48 hours but could not be activated until the Debit Card arrived, which it did on Monday.
      Also in the interim, Starling Bank became an accreditted BBLS Lender, so on Monday, having activated the account, I applied for a loan under BBLS…
      ….the papwerwork came through about an hour ago, which I signed online and the funds hit my account 10 minutes ago!! 🙂

      So, my advice, apply for a Starling Account and deal with a Bank that wants to do business, not prevent it!

    • Roly
      6 days ago

      Hi sam have received your bounce back loan yet I applied last week iv still not had anything

      Thanks

  • Millie
    2 weeks ago

    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

  • Sam
    2 weeks ago

    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!

  • andy
    2 weeks ago

    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.

    • Nigel
      2 weeks ago

      That sounds a bit “odd” as I thought HSBC, like other banks, were doing everything online – no letters or contracts to sign, just an “acceptance” tick box.
      You might want to check that out as it just doesn’t sound “right”…

  • Angeline
    2 weeks ago

    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

  • Chel
    2 weeks ago

    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

    • Nigel
      2 weeks ago

      My brother applied through Lloyds, got the standard “…pleased to offer you…” email early next day and funds arrived that afternoon, with no further communications.

  • 2 weeks ago

    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

    • Nigel
      2 weeks ago

      Yep, Yorkshire Bank seem to be extremely slow but three weeks seems excessive, even for them!
      I suggest you get in touch with your Account Manager and ask them to investigate – although, unfortunately, you’ll probably get a response along the lines of “…sorry, there’s nothing I can do …its not my department” …and so on!
      However, it should come through eventually, although you probably won’t receive any notification that it has been paid into your account.

  • Chel
    2 weeks ago

    Thanks Nigel for your response! I am feeling more positive now. Hopefully tomorrow I will have a response

  • 1 week ago

    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.

    • Nigel
      1 week ago

      I’m sorry but that sounds like complete bullsh*t!
      I got fed up waiting for Yorkshire Bank to process my application so opened a Starling Business Account instead.
      I applied for a Bounce back Loan and it was paid two days later – with NO activity on the account.
      So, for Yorkshire to say you don’t qualify due to lack of activity is complete and utter rubbish – especially as “account activity” is not one of the lending criteria!
      My advice?
      Open a Starling Account via their simple, online process and as soon as it is opened and activated (you have to wait for your Debit Card to come through and activate it), apply through Starling then close your current business account – Starling can also do that for you with no charge or hassle!
      As the Meercat says: “Simplez!”

  • Dan
    1 week ago

    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
      1 week ago

      Hi Dan,
      So far as I can remember, the 25% (which is capped at a maximum of £50,000) is based on your 2019 turnover, unless your business started more recently, in which case it is based on a projection of your turnover.

      This from moneysavingexpert.com:
      “You can borrow between £2,000 and £50,000. Though the amount is capped at 25% of your total turnover (usually for calendar year 2019, or new businesses can estimate).”
      Hope that helps.

  • 1 week ago

    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.

    • Nigel
      1 week ago

      Hi Pam,
      I still think that smells rotten as surely I would not have been given a loan, having never even had an account with Starling before.
      This is the .gov.uk page: https://www.gov.uk/guidance/apply-for-a-coronavirus-bounce-back-loan
      It does state that if you are turned down by your bank, you can apply to another.
      I went with Starling as that was who my Accountant recommended – and she wasn’t wrong. 🙂

  • Jonah
    1 week ago

    I wonder if loan refusal has affected anyone’s credit status ?

  • Laura
    1 week ago

    Pam who turned you down ?

  • 1 week ago

    Laura Yorkshire Bank

  • Sam
    4 days ago

    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

Featured in this article from the Tamebay Guide – companies that can help you grow and manage your business.

See More Companies >

Recent Comments

9 hours ago
Michael Warner: Best news all year and long overdue. It's a few lines of code to implement...
11 hours ago
Derek Duval: The only way I see it working is collect VAT at Source and then reclaim...
11 hours ago
Toby: Thank god for this. I so hope it happens. sick to death of fraudsters from...
11 hours ago
Toby: Hermes.... hmmm that will be the company that hasn't managed to deliver a parcel to...