More than 110,000 small businesses applied for a Bounce Back loan on 4 May, the first day the scheme was available.
Banks providing the loans said they had approved the vast majority of applications and said the money would arrive in bank accounts within 24 hours. The average loan size was £30,000.
The Bounce Back Loan Scheme allows small businesses, hit by the impact of the coronavirus (COVID-19) pandemic, to apply for up to £50,000, with the government guaranteeing 100% of the advance.
Businesses can apply for a minimum of £2,000, up to a maximum of £50,000, or 25% of business turnover, with the government paying the interest for the first 12 months.
Commenting on the launch, Mike Cherry, National Chairman of the Federation of Small Businesses (FSB), said: ‘Day one feedback on the Bounce Back Loan Scheme has been mixed. Some have submitted their short application forms with no trouble at all, others have been told to wait for forms to arrive, and some have struggled to make an application due to site failures.’