Co-op and Starling to start offering up to £ 50,000 in rebound loans to small businesses

THREE new lenders have been approved for the government’s rebound loan program, which aims to help small businesses get back on their feet.

The Co-operative Bank, Starling Bank and Allied Irish Bank are the latest institutions to be able to offer the loans, joining 11 other banks that have already been approved.


Small business owners can access loans between £ 2,000 and £ 50,000, depending on their turnoverCredit: AFP – Getty

Under the new program, launched on May 4 and available until November 4, businesses can obtain loans worth up to 25% of their turnover, up to a maximum of 50,000. £.

They are 100 percent guaranteed by the government, and the government will cover the interest on the loans for the first 12 months, with companies being able to repay the remaining balance over the next five years at an interest rate of 2, 5 percent.

Co-op said they started offering the loans from this morning, although Starling and Allied Irish have yet to confirm when they will start accepting requests.

The news should be welcomed by small business owners, some of whom have struggled to access cash in recent days.

Small businesses can currently only access loans through banks where they already have a business account.

“Securing a short-term rebound loan will be crucial”

RAFAEL Rozenson, pictured, started his business in early 2018.

Its Vieve Protein Water range is stocked in a number of gyms – but all are now closed.

Speaking ahead of today’s announcement, the 40-year-old businessman, who is a client of Starling, told The Sun he believes the government has left aid gaps, which meant that some companies were missing out.

Until today, he was not eligible for bounce loans because Starling had not joined the program and most lenders only offer support to their own clients to begin with.

He adds that he is not entitled to a leave because he is the director of a limited liability company and that he cannot do it himself because he still has to work in the company. He does not employ any other staff.

“I am worried about the future, because the majority of our clients have stopped negotiating and most of our big plans for 2020 have been canceled,” he explained.

“We are also not eligible for the government’s Business Interruption Loans (CBILS) program because, like many start-ups in our industry, we are still in deficit.

“This means that we don’t meet the financial criteria.

“We can defer paying our VAT and it will help although it is not a huge amount – but there is not much else we are entitled to.

“I was really excited when the rebound program was launched as we are looking for a small loan to help us during the crisis.

“The next few months are really about survival and getting the short-term rebound loan will be crucial.”

This means that the more banks added to the program, the more businesses will be able to apply for a loan, although the government wants banks to start offering loans to non-customers as well.

Starling Bank has approximately 100,000 commercial customers, while Allied Irish has 294,000 customers among its commercial, personal and corporate customers.

Co-op, meanwhile, has more than 85,000 small business customers.

Banks that currently offer rebound loans

These banks have been approved by the government to offer coronavirus loans to small businesses.

  • Irish allies
  • Bank of Scotland
  • Barclays
  • Clydesdale Bank and Yorkshire Bank
  • Cooperative bank
  • Danske Bank
  • HSBC
  • Lloyds Bank
  • NatWest
  • Santander
  • Starling
  • BST
  • RBS
  • Bank of Ulster

Keith Morgan, managing director of the British Business Bank, which approves lenders to offer the loans, said: “There has been an incredible demand from small businesses for rebound loans since the program launched this week.

“The integration of lenders with the capacity and the means to implement the program quickly means that more UK small businesses will be able to access the finance they need to get through the current pandemic.”

Businesses wishing to apply for a loan must have been in business since March 1 and must prove that they have been affected by the coronavirus crisis.

You are not allowed to use any other government-backed coronavirus control program, or be in liquidation or bankruptcy.

When the rebound loan program launched last week, the website collapsed as 30,000 businesses applied for a loan in just 30 minutes.

Martin Lewis explains how self-employed people and business owners can apply for rebound loan assistance.

Banks have already been ordered to step up lending to small businesses hit by financial difficulties in recent weeks.

Coronavirus UK business survival: ‘rebound loans’ explained and how to prepare for the lockdown being lifted
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