High demand for small emergency loans from businesses
Royal Bank of Scotland (RBS) has approved 70% of the loans handed out to businesses under the government-backed Coronavirus Business Interruption Loan Scheme (CBILS). New figures show RBS approved 2,500 loans and the lender is the only major bank offering CBILS loans worth below £25,000. Small businesses are reporting that banks require them to borrow a minimum of £25k. HSBC told the Telegraph it is working on reducing the size of loans available to sole traders to below this amount. Finally, the Sunday Times reports that only 5,000 small businesses have received cash under the CBILS more than three weeks since it was launched. The paper says lenders are blaming the British Business Bank for creating a bottleneck for loan applications.