Customers struggle to apply for emergency interest-free business loans
Businesses are still struggling to access new emergency coronavirus loans two weeks after their launch.
The £ 50,000 ($ 60,518.50) Bounce Loan (BBL) is a government-backed program that provides vital funds without interest for one year.
But despite the approval of hundreds of thousands of applications, major banks are still dropping some of their professional clients, according to a BBC report.
Business owners waited on the phone for hours while trying to apply for loans and some Barclays customers have been told, falsely, that their personal information was entered incorrectly or that having two signatories on their account was a problem.
Barclays said 95% of applicants have received their funds and are working hard to help those who have fallen through the cracks.
Maria Ogden, who runs a car rental business in Oswestry, Shropshire, is waiting for an emergency loan from Santander.
She initially applied for the Coronavirus Business Interruption Loan (CBIL), then moved on to the Bounce Loan Program (BBLS) believing it would be easier and faster.
She told the BBC she spent a week on the phone and email to try and apply for the loan.
Santander said that while the requests were handled quickly and smoothly, some were more complicated and they were dealt with as quickly as possible.
Almost 270,000 rebound loans, worth more than £ 8 billion, have already been approved since the start of the program.
A spokesperson for the Treasury said: “Millions have already landed in people’s accounts and lenders are working hard to process and approve all requests as quickly as possible.
“All lenders are welcome to apply for the program, and we work closely with banks to ensure businesses get the financing they need.”
Responding to the BBC’s criticism, HSBC said: “We have seen an unprecedented demand for Bounce Back loans and have worked hard to get these much needed loans to our clients as quickly as possible and we apologize for any inconvenience.”