Funding Circle (LSE: FCH), an SME lender that facilitates loans in both the U.S. and parts of Europe, recently announced it received accreditation under the British Business Bank’s Recovery Loan Scheme (RLS). Funding Circle reported that RLS loans will be offered alongside the platform’s existing commercial loan product.
“RLS will enable lenders to support a wider range of borrowers than would be possible through non-guaranteed lending alone, helping more UK small businesses access the finance they need to grow and power the economic recovery.”
While sharing more details about the accreditation, Lisa Jacobs, Europe Managing Director of Funding Circle, stated:
“We welcome the opportunity to support thousands of small businesses at this crucial moment in the UK’s recovery. Small businesses are the backbone of the economy, and with 70% of our customers saying they require further funding, continued access to finance is more important than ever.”
Funding Circle further claimed it has played a significant role supporting small businesses during the COVID-19 pandemic as the third largest provider of finance under the Coronavirus Business Interruption Loan Scheme (CBILS), which closed for new applications at the end of March 2021. Last year, lending through the platform is estimated to have contributed £7.5 billion to UK GDP and supported 100,000 jobs.
Founded in 2010, Funding Circle claims to be the UK’s largest loan platform for SMEs. The company further revealed that a wide range of investors have directly lent more than £11.5 billion to approximately 100,000 businesses globally through its platform.