Matt Hammerstein the boss of Barclays said they received 200 applications for the bounce back loan which business can received up to £50,000, in just one minute after it was launched at 9am.
The loans are aimed at small businesses and sole traders who can apply for a loan up to £50,000, there is also no limit on the size of business that can apply.
Mike Cherry head of the Federation of Small Businesses (FSB) said this “offers real hope” for small businesses.
She scheme offers smaller amounts than the Coronavirus Business Interruption Loan Scheme (CBILS), which provide loans of up to £5m if the company has a turnover of less than £45m.
Banks have been heavily criticised in their delays in handing out loans by some businesses particularly small firms.
Banks are using their usual lending criteria which is making it difficult for smaller firms to receive the loans required.
However, the British Chambers of Commerce has said that around 30% of its members say they cannot afford to take on more debt.
As of Thursday, last week the number of CBIL loans agreed stood at 8,638, which is down from 9,000 the week before.
Out of 52,807 loans that were applied for, 28,000 are still waiting to be processed.
Steven Jones, chief executive of UK Finance, told the BBC the affordability checks will “be lighter.”
But he is strongly advising firms that they should still “think very carefully about their ability to repay the loan.”
Jones warned, “These are loans, not grants, so if a business is already indebted and taking on further debt, they should think carefully before making an application.”