UK’s Starling Bank Accredited by British Business Bank as Lender Under Recovery Loan Scheme

UK-based digital bank Starling has been accredited by the British Business Bank as a lender under the government-backed Recovery Loan Scheme (RLS), which is the successor to the Coronavirus Business Interruption Loan Scheme (CBILS). Starling had previously been approved as a lender under the initial business COVID relief programs.

As mentioned in a release shared with CI, this will enable Starling Bank to offer term loans of “between £25,001 and £250,000” to SMEs impacted by the Covid-19 pandemic.

Applications for this lending were open on Tuesday (June 1, 2021).

Starling bank‘s management confirmed that they’ll not be requiring personal guarantees and borrowers will “remain 100% liable for repayment of their loan.” The banking challenger also mentioned that loans are “protected by an 80% government guarantee to the lender.”

The announcement also noted that businesses that may have already taken out a CBILS, CLBILS or BBLS facility “will be able to access the new scheme, subject to eligibility and credit assessment.”

The update from Starling added that interest “will be priced according to business circumstances, businesses will be required to meet the costs of interest payments themselves from the start of the loan.”

The bank’s management explained that business owners may apply for a Starling RLS term loan if they can satisfy the following criteria:

  • Limited Company or Limited Liability Partnership
  • Trading for 24 months or more
  • Have a good credit history with no arrears or defaults
  • Pass Starling’s affordability checks

Starling’s announcement further noted loans are “available for terms of up to one to six years and customers will pay a one-off 4% loan arrangement fee.” The bank confirmed that SMEs will “be able to apply for RLS lending via the Starling website.”

Helen Bierton, Starling Bank’s Chief Banking Officer, stated:

“Business owners have worked hard to survive and, in some cases, grow, against an extremely difficult, unusual and uncertain economic backdrop. As the economy starts to rebound, many will need additional help to support their recovery, investment and growth. Starling will be here with RLS lending to help with that. We’re delighted to be working with the British Business Bank as an RLS lender.”

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