Starling Bank: NGO against COVID-19 Bounce Back Loan Scheme
Entity: Starling Bank
Category: Bounce Back Loan Scheme; Coronavirus Business Interruption Loan Scheme
Description: Starling Bank provides a mobile banking application and a debit card that enable users to manage their finances. Its application allows users to send money to their friends, save together for trips, and have total control at their fingertips. Anne Boden founded Starling FS in 2014 that became Starling Bank in July 2016.
1. Project: Bounce Back Loan Scheme for SMEs
. Summary: Starling Bank is accredited by British Business Bank to offer Bounce Bank Loans to SMEs. 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 started 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.
2. Project: Coronavirus Business Interruption Loan Scheme
. Summary: The Coronavirus Business Interruption Loan Scheme (CBILS) CBILS is managed by the British Business Bank only through accredited lenders and supported by a range of approved partners. provides financial support to smaller businesses (SMEs) across the UK that are losing revenue, and seeing their cashflow disrupted, as a result of the COVID-19 outbreak. The scheme is a part of a wider package of government support for UK businesses and employees. Read more at the Government’s Business Support website. CBILS has been significantly expanded along with changes to the scheme’s features and eligibility criteria. The changes mean even more smaller businesses across the UK impacted by the coronavirus crisis can access the funding they need. Importantly, access to the scheme has been opened up to those smaller businesses that would have previously met the requirements for a commercial facility but would not have been eligible for CBILS. Insufficient security is no longer a condition to access the scheme.
