UK-based digital banking group Starling Bank announced on Thursday it has launched a new tool that helps business customers to find the appropriate Government coronavirus support scheme for them. Starling Bank further revealed that the tool asks users a series of questions related to their business, before providing them with a list of the relevant government support schemes.
The launch of the new tool comes just days after Starling announced it was accredited by the British Business Bank as a lender under the government-back Coronavirus Business Interruption Loan Scheme (CBILS). The accreditation will enable Starling to provide 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 also shared:
“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. This means smaller businesses will benefit from no upfront costs and lower initial repayments. 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 may 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
Starling then added that it is also offering business overdrafts of £1,000 to £150,000 under the Scheme, with Sole Trader businesses also eligible to access a business overdraft up to £10,000.