Starling Accredited As Recovery Loan Scheme Lender

Starling added to the list of recovery loan scheme lenders

Starling Bank has joined the Recovery Loan Scheme after it was accredited as a lender by the British Business Bank. This means that it will now be able to offer loans to small and medium-sized businesses that have been affected by COVID-19. It is one of the only challenger banks to be granted this status.

Applications for loans are now open with Starling. Businesses will be able to borrow between £25,001 and £250,000 and will remain 100% liable for the repayment of their loan. Starling are protected as the loans are covered by an 80% government guarantee.

Lending Criteria

Businesses that wish to apply for a Recovery Loan Scheme loan must meet certain criteria. They need to be a Limited Company or a Limited Liability Partnership and they must have been trading for at least 2 years. Businesses need to show that they have a good credit history, without any defaults or arrears, and that they can pass Starling’s affordability checks.

Businesses can apply for an RLS loan even if they have already taken out a CBILS, CLBILS or BBLS loan, providing they are eligible and pass the affordability checks.

Loans are available for periods of one to six years, and applicants will need to pay a loan arrangement fee of 4%. Interest rates vary depending on the circumstances of the business, with applicants required to pay the interest from the start of the loan.

Small and Medium-sized Enterprises (SMEs) can apply for the loans now on the Starling Bank website.

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.

Helen Bierton, Chief Banking Officer for Starling

About the RLS

Launched in early April 2021, the Recovery Loan Scheme is designed to help businesses recover from the impact of the coronavirus pandemic. There are no restrictions on how businesses use the funds from the loan – it can be put towards investment, used to help the business grow or just as cashflow.

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    It succeeds a number of prior schemes – the Bounce Back Loan Scheme (BBLS), the Coronavirus Business Interruption Loan Scheme (CBILS) and the Coronavirus Large Business Interruption Loan Scheme (CLBILS).

    Most of the banks offering RLS loans are either major high street institutes or dedicated lenders. Starling joins Atom Bank as the only digital challenger banks accredited to provide these loans.

    Businesses that wish to apply for an RLS loan must be able to show that it has been adversely impacted by the pandemic and that it would otherwise be viable. The only businesses that outright cannot apply are banks and building societies, insurers and reinsurers, public-sector bodies, and state-funded primary and secondary schools.

    The scheme is open for applications until 31st December 2021.