This is a translation of Mike's Ruby version, into Common Lisp:
(defun perms (x y original-string)
(loop with all = (list "")
with current-array = (list "")
for iteration from 1 to y
do (loop with next-array = nil
for string in current-array
do (loop for c across original-string
for value = (concatenate 'string string (string c))
do (push value next-array)
(push value all))
(setf current-array (reverse next-array)))
finally (return (nreverse (delete-if #'(lambda (el) (< (length el) x)) all)))))
And another version, slightly shorter and using more loop facility features:
(defun perms (x y original-string)
(loop repeat y
collect (loop for string in (or (car (last sets)) (list ""))
append (loop for c across original-string
collect (concatenate 'string string (string c)))) into sets
finally (return (loop for set in sets
append (loop for el in set when (>= (length el) x) collect el)))))