Lloyds approved seven times as many “bounce back” loans to distressed businesses in a day than in a month under the government’s emergency lending program.
It boasted of having approved loans worth a total of £ 1billion to 32,000 companies under the Fast-Track Loan Program in just 24 hours.
This represented around 98% of applications, with companies receiving an average of £ 30,000.
Lloyds has boasted of approving loans worth a total of £ 1billion to 32,000 companies under the Fast-Track Loan Program in just 24 hours.
The lender has been accused of not having sufficiently approved the Coronavirus Business Interruption Loan (CBILS) program for small and medium businesses.
Since the program launched more than a month ago, it has approved loans worth just £ 618million to more than 4,500 companies, far fewer than other big banks.
As it emerged that the biggest lenders were inundated with over 200,000 requests worth over £ 4bn for bounce loans in the first two days, Ian Cass, Managing Director of the Forum of Private Business said: ‘It looks as if there is any risk to them. Lloyds is not interested.
“As soon as the government takes 100% of the risk, it starts granting loans like Smarties.
The rebound program was announced by Chancellor Rishi Sunak last week and launched on Monday.
The goal was to provide quick loans of up to £ 50,000, 100% government guaranteed, to small businesses.
Companies were told that the money, which is interest-free the first year, would land in their accounts within 24 hours.
Under the CBILS scheme, loans are 80% taken out by taxpayers, which means that the banks bear part of the risk if the company does not repay.
Thousands of businesses have been denied credit by their bank or have faced agonizing expectations for cash.
This created a huge pent-up demand for credit.
RBS / Natwest said as of 3.30pm yesterday it had received more than 58,000 claims – with an average value of £ 37,000 – more than £ 2 billion in total.
Santander received 19,977 applications on Monday, offering 15,414 loans worth £ 431million that day.
HSBC received 68,196 applications as of 4.30pm yesterday, including many from existing customers who have applied for loans worth £ 1.3bn.
Barclays had approved more than 32,000 loans by 4pm. But companies said they were barred from applying online, with flashing error messages.
Barclays admitted that they could not process online requests when there is more than one signer on the account.
He said some online applications were blocked when details did not match those on his systems. Barclays said “the vast majority were able to apply online”.
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