The British Business Bank (BBB) has accredited Starling Bank and CG Business Finance to the recovery loan scheme (RLS).
Starling Bank, which funded more than £358m of loans under the coronavirus business interruption loan scheme (CBILS) and over £1bn in bounce back loans, will provide term loans of between £25,001 and £250,000 to small and medium-sized enterprises (SMEs) under the RLS.
The digital bank, which will not require personal guarantees, will price interest according to business circumstances.
Business owners can apply for a Starling RLS term loan if they are a limited company or limited liability partnership, have been trading for 24 months or more, pass the lender’s affordability checks and have a good credit history with no arrears or defaults.
Meanwhile, CG Business Finance will provide business term loans from £25,001 to £100,000 targeting businesses based in Greater Manchester only.
Both lenders have opened for applications under the RLS today.
There are now 32 accredited lenders listed on the state development bank’s website for the scheme.
“Business owners have worked hard to survive and, in some cases, grow, against an extremely difficult, unusual and uncertain economic backdrop,” said Helen Bierton, chief banking officer at Starling Bank.
“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.”
The RLS scheme, which can be used for any legitimate business reason and has a maximum facility of £10m, provides loans from £1,000 for asset and invoice finance and from £25,001 for term loans and overdrafts. It was was launched on 6 April, replacing CBILS.