Starling Bank, a UK based digital bank, has shared that during the first day and half of availability the Fintech paid out £90 million in Bounce Back Loans. The bank also made a total of £120 million in offers for these loans.
Simultaneously, Starling Bank reported a robust sign up for new accounts. The bank said that interest in the Bounce Back Loan Scheme (BBLS) has led to a spike in businesss and sole trader account openings which are now at a record level. Yesterday (Monday), Starling Bank opened almost 1900 new business accounts.
The BBLS is a plan to provide access to capital to the smallest of UK firms that have been pummeled by the Coronavirus pandemic. Borrowers may receive loans of up to £50,000. These loans require no payments for one year and are guaranteed by the UK government.
The BBLS was kicked off on Monday, May 6th. During the first day, HM Treasury reported over 69,000 loans valued at more than £2 billion. Starling Bank is the first Fintech to be approved to offer the loans which were available yesterday.
Additional information is available on the British Business Bank website.