HSBC Halts New Bounce Loan Applications Amid Huge Demand

Darren Jones, chairman of the BEIS select committee, wrote to Business Secretary Alok Sharma on Thursday asking what steps had been taken to address the risks that loan programs could lead to increased fraud and hurt competition between lenders.

The British Business Bank, which administers the programs, raised concerns with Mr Sharma in May ahead of the launch of the rebound program and the Future Fund, which supports start-ups.

The deadline for businesses to apply for bounce loans is November 30, but lenders are required, as part of the program, to confirm any loan offers by December 31.

HSBC has so far approved 194,000 rebound loans with a total value of almost £ 5.9 billion and said it approves a new loan every 20 seconds.

It will continue to process requests from existing customers as well as those from non-customers before 9 a.m. on Wednesday, September 30. New small business customers will not be able to open an account until December 14.

A spokesperson for HSBC UK said: “As one of the only banks to have remained open to applications from all UK businesses since the start of the program, we have received a huge demand. With the program closing on November 30, we need to focus our resources on building existing applications. ”

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