- Starling accredited by the British Business Bank as a BBLS lender
- Fixed interest rate at 2.5%
- Loans are interest and fee free for the first 12 months
Update 31 March 2021: In line with the government’s announcements, this scheme ended on 31st March. Starling is no longer accepting applications for CBILS loans. Starling plans to continue to support SMEs. We are currently in discussion with the BBB to offer Starling SMEs the government’s Recovery Loan Scheme.
LONDON 7 May 2020: Starling, the digital bank, has been accredited by the British Business Bank as a lender under the government-backed Bounce Back Loan Scheme (BBLS). This will enable it to offer term loans of between £2k and £50k to small and medium-sized enterprises (SMEs) that are struggling financially as a result of the coronavirus emergency. Applications will open on Monday 11th May 2020 via Starling’s secure online banking platform.
Under BBLS, the rate of interest is fixed at 2.5%. The loan will be interest free for the first 12 months, as the interest will be claimed by Starling, on customers’ behalf, from the government. So businesses will benefit from no upfront costs and no repayments in the first year.
SMEs can borrow up to a maximum of 25% of their annual turnover. No personal guarantees will be required, so borrowers and guarantors will not have to put up their principal private residence as security. The loan term is six years, but customers can pay back the loan sooner with no early repayment charge.
SMEs can apply for a Starling BBLS term loan, if their business:
- Uses Starling as their main business account
- Has been negatively impacted by coronavirus
- Was established and trading by 1 March 2020 (inclusive)
More details about Starling’s BBLS criteria can be found on the Starling Bank website.
The BBLS provides lenders with a 100 per cent government-backed guarantee.
Helen Bierton, Starling Bank’s Chief Banking Officer, said: “We know there is high demand for these loans from businesses that are struggling and we expect that our simplified application process will free up cash within days. We’re delighted to be working with the British Business Bank as a BBLS lender.”