More than 69,000 bounce back loans worth over £2bn have been approved during the first 24 hours of the government scheme, the Chancellor has announced.

The Treasury revealed the seven largest lenders – Barclays, Danske, HSBC, Lloyds, RBS, Santander and Virgin Money – had received more than 130,000 Bounce Back Loan Scheme applications on Monday, the first day of the scheme, and that more than 69,000 of these have been approved.

Yesterday, Lloyds revealed it had serviced more than 32,000 businesses in a day with loans totalling over £1bn, having issued average loan amounts of over £30,000.

The Bounce Back Loan Scheme is being delivered by lenders accredited by the British Business Bank to target small and micro businesses in all sectors, providing loans from £2,000 up to 25% of the business’ turnover, with a maximum loan value of £50,000.

The Treasury suggested bounce back loans will help thousands of small firms get finance quickly at a low, affordable rate with a “100% government-backed guarantee”, and that lenders were working hard to process and approve the rest of the applications as quickly as possible.

Chancellor, Rishi 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 more than 69,000 business benefitting in just the first day. It’s vital this speedy progress continues in the days and weeks ahead.”

Responding to the Treausry’s release of the data, UK Finance chief executive, Stephen Jones, said: “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.”

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