(Adds detail)
By David Milliken and William Schomberg
LONDON, April 15 (Reuters) - British banks are dealing with
a backlog of more than 20,000 applications for emergency
government-backed finance from small businesses struggling due
to the coronavirus, three weeks after the scheme was launched,
industry figures showed on Wednesday.
UK Finance, a trade body that represents major lenders, said
its members had lent 1.115 billion pounds ($1.39 billion) as of
April 13, up from 453 million pounds a week earlier.
But since the scheme opened three weeks ago, many businesses
have complained it has been slow to provide funds.
A survey from the British Chambers of Commerce earlier on
Wednesday showed that just 2% of small businesses said they had
received money from the scheme - the first part of part of 330
billion pounds of state lending - while 9% had been rejected or
were still waiting for a reply.
UK Finance said its members had worked over the Easter
holiday weekend and approved 6,020 loans in total as they work
through the 28,460 applications which they have received so far.
"Like all businesses they are working at reduced capacity as
many staff are self-isolating or looking after family," Stephen
Jones, the chief executive of UK Finance, said.
The Coronavirus Business Interruption Loan Scheme gives
loans of up to 5 million pounds to companies with a turnover of
up to 45 million pounds. The government guarantees 80% of the
loan, but banks will be on the hook for the remaining 20% if
borrowers default.
Finance Minister Rishi Sunak has rejected calls from some
business groups and politicians for the government to shoulder
100% of the losses in order to speed up the roll out of loans.
"We're working with lenders to ensure support reaches those
in need as soon as physically possible," he said on Wednesday.
UK Finance said the average size of the loans it had made
was 185,000 pounds.
The Federation of Small Businesses said the process was
still too daunting for the smallest firms and a fast-track
process for loans under 30,000 pounds needed to work better.
"Many members tell us it's difficult to get to the formal
application stage - banks are still slow to respond to CBILS
enquiries. Even if you do get your forms through, the process is
very demanding for the uninitiated," FSB Chairman Mike Cherry
said.
($1 = 0.7997 pounds)
(Editing by David Evans)