Leading digital bank Starling Bank has been accredited as a Bounce Back Loan provider by the British Business Bank. The approval of Starling Bank was anticipated by the Fintech and the bank now joins the original list of traditional financial services firms providing the loans. Starling is the first UK Fintech to receive approval.
Under the COVID-19 support program, small firms may receive government-guaranteed loans of up to £50,000. These loans require no payments for 12 months. Following the initial period, a borrower will pay a fixed rate of 2.5%.
As was reported earlier this week, the Bounce Back Loans have been enormously popular with over 69,000 loans valued at more than £2 billion being approved in the first 24 hours of the program that was opened up this past Monday.
Starling Bank will begin offering the Bounce Back Loan Scheme (BBLS) loans beginning Monday, May 11, 2020.
Starling currently reports over 150,000 business accounts.