Starling Bank

Starling approved as Recovery Loan Scheme lender

Starling Bank has been accredited by the British Business Bank as a lender under the government-backed Recovery Loan Scheme (RLS), the successor to the Coronavirus Business Interruption Loan Scheme (CBILS).

The bank will be able to provide term loans between £25,001 and £250,000 to SMEs affected by Covid-19, with applications open from 1st June.

Loans are available for terms between one and six years and customers will pay a one-off 4% loan arrangement fee. 

SMEs will be able to apply for RLS lending via the Starling website.

The lender will not require personal guarantees and borrowers will remain 100% liable for repayment of their loan. 

The facilities are protected by an 80% government guarantee to the lender.

Businesses that have already taken out a CBILS, CLBILS or BBLS facility will be able to access the new scheme, subject to eligibility and credit assessment.

Interest will be priced according to the borrower’s circumstances, and businesses will be required to meet the costs of interest payments themselves from the start of the loan.

Business owners can apply for a Starling RLS term loan if they meet all of the following criteria:

  • the borrower is a limited company or limited liability partnership business
  • the company has been trading for 24 months or more
  • the borrower has a good credit history with no arrears or defaults

Borrowers must also pass Starling Bank’s affordability checks to be eligible for a RLS facility.

Helen Bierton, chief banking officer at Starling Bank, said: “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.”

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