Following approval by the British Business Bank as CBILS lender, Starling Bank – a digital-only bank, has issued a statement. Starling is a fully licensed and regulated bank, founded by Anne Boden, former Allied Irish Banks COO, in 2014.
Helen Bierton, Starling Bank’s Chief Banking Officer, said:
“Business owners who have poured their heart and soul, not to mention their life savings, into successful enterprises are crying out for help. The important thing now is to get money into their hands. We believe that CBILS is the best way to do this. We’re delighted to be working with the British Business Bank as a CBILS lender.”
The government-backed Coronavirus Business Interruption Loan Scheme (CBILS) will enable term loans between £5,000 and £250,000 to small and medium-sized enterprises (SMEs) that are struggling financially as a result of the coronavirus emergency. Starling Bank said it will shortly confirm the date from which it will be ready to start receiving CBILS applications.
Under CBILS, the first 12 months of interest on the facility and any arrangement fees will be paid by the UK government as a Business Interruption Payment. Smaller businesses will benefit from no upfront costs and lower initial repayments.
Importantly, no personal guarantees will be required, so borrowers and guarantors will not have to put up their principal private residence as security.
SMEs with an annual turnover of up to £45 million can apply for a Starling CBILS term loan, if they meet all of the following criteria:
- Limited Company or Limited Liability Partnership
- Trading for more than 18 months
- Have a good credit history with no arrears or defaults
Additionally, Starling is also offering business overdrafts of £1k to £150k under the Scheme, with Sole Trader businesses also eligible to access a business overdraft up to £25k. Loans are available for terms of up to 5 years. Overdrafts are a revolving credit facility and renewable annually.