Small businesses have secured more than 69,000 government-backed loans worth in excess of £2bn in the first 24 hours of the scheme’s launch. The number represents 53% of the 130,000 applications lodged by businesses trying to access cheap funding through the bounce-back loan scheme (BBLS), which launched on Monday morning as part of the government’s response to the Covid-19 lockdown. The number of applications surged to more than 200,000 by Tuesday evening, according to a Guardian tally of individual lenders. The Treasury said banks were trying to process applications as quickly as possible. Small businesses have been scrambling to apply for the scheme, which offers 100% government-backed loans worth up to £50,000, capped at 25% of a turnover, at an interest rate of 2.5%. The first 12 months are payment- and interest-free. The chancellor, Rishi Sunak, said: “These loans will help them bounce back from this crisis, getting money fast, so it’s great to see close to 70,000 businesses benefiting in just the first day. It’s vital this speedy progress continues in the days and weeks ahead.” The Treasury’s figures suggest there is ample demand for cheap government cash among small businesses. Applications via the fast-track scheme, which involves a simple online form, far exceed those made through the much-criticised coronavirus business interruption loan scheme (CBILS). According to the latest data, UK lenders have received 52,807 formal CBILS applications and approved 25,262 CBILS loans worth £4.1bn since that scheme’s launch on 23 March. The programme – which requires additional checks and processing, and has varying interest rates and a lower government guarantee – has been criticised for being too slow in getting cash to small and medium-sized businesses that need it most. However, the bounce-back loan scheme has also been criticised for approving issuance by a small number of lenders before its launch, compared with the 40 lenders that were authorised for CBILS at the start of the original programme. The state-owned British Business Bank, which is managing the scheme, has so far accredited only eight lenders to dole out funds, including Lloyds, Santander, Virgin Money UK, TSB, Danske Bank and Barclays. Most of those lenders are restricting loans to their business customers, raising fears that many small businesses that hold accounts with other banks could end up being locked out of the scheme. HSBC and RBS are accepting external applicants for the emergency cash loans but they are still prioritising their account holders. The British Business Bank expects to accredit more lenders over the coming weeks but has not confirmed how many have applied. Mike Cherry, the national chairman of the Federation of Small Businesses, said despite a “promising start” for the bounce-back scheme, some firms were still reporting difficulties. “Unfortunately, we are hearing reports that bounce-back application forms are hard to access or inquiries are simply being acknowledged with a ‘We’ll call you’ message and nothing further,” he said. “Many of the most vulnerable business owners – particularly sole traders – only have personal banks accounts and, as a result, are being told they cannot access a bounce-back loan. It’s vital that they are helped to secure the finance on which many will depend to make it through this incredibly challenging time.”