Lenders have approved an average of 87,000 Bounce Back loans every week since the scheme was launched on 4 May, according to the latest figures from the Treasury.
The Bounce Back Loan Scheme (BBLS) allows small businesses hit by the impact of the coronavirus (COVID-19) pandemic to apply for up to £50,000, with the government guaranteeing 100% of the advance.
Businesses can apply for a minimum of £2,000, up to a maximum of £50,000, or 25% of business turnover, with the government paying the interest for the first 12 months.
The BBLS has proved the most popular of the government's COVID-19 business support schemes. It saw 110,000 applications on the first day, and the latest figures show that 1.13 million small and micro businesses have now used Bounce Back loans.
Meanwhile, the Coronavirus Business Interruption Loan Scheme (CBILS) has now supported 58,600 businesses with over £13 billion worth of finance and facilities.
Lenders have also backed 480 larger businesses through the Coronavirus Large Business Interruption Loan Scheme (CLBILS).
Commenting on the figures, Stephen Pegge, Managing Director of Commercial Finance at UK Finance, said: 'Bounce Back loans are just one aspect of the sector's support package for the UK economy, alongside other measures including capital repayment holidays, extended overdrafts and invoice finance facilities.
'This support is designed to ensure businesses are able to navigate the coming months, but diverse sources of finance will be needed to help them prosper in the future.'