SME Lender Online Funding Circle Approved For CBILS Loans
SME Marketplace Lending Platform Fundraising circle (LSE: FCH) has been approved by the British Business Bank as a lender under the Coronavirus Business Interruption Loan Scheme (CBILS). The online lender is becoming one of the few Fintechs in the UK to facilitate the scheme.
Funding Circle said it plans to open CBILS applications over the next week once it obtains the required legal and operational approvals with the bank.
Keith Morgan, CEO, British Investment Bank, declared:
“Our accredited lenders have seen an incredible demand for CBILS since the program became available. As the first newly accredited market lending platform to be accredited under CBILS, Funding Circle will be able to provide more capacity, more choice and, most importantly, vital financing for small businesses across the world. UK. This accreditation is a continuation of the British Business Bank’s long-term support for the growth of the loan market from its early stages.
According to the British Business Bank, over 80% of UK small businesses have a financial relationship with CBILS accredited lenders. The British Business Bank says it is accelerating the onboarding of new lenders to further expand the reach of the program.
“Small businesses are the heart of our economy, but many need financial support in this time of crisis. Funding Circle is uniquely positioned to use its cutting edge technology, risk analysis platform and data to help distribute funds to small businesses during this time of crisis. We are ready to play our part now that we have been accredited with the UK and US government SME lending programs. “
The Bank adds that it continues to review applications from a wide range of types of lenders – from PRA-regulated banks to platform lenders, debt funds, bill finance lenders, debt finance lenders. ‘assets and responsible financial lenders.
Funding Circle is the UK’s largest online small business loan provider, providing over £ 6.2 billion in loans to over 57,000 businesses.
Earlier this week, Funding Circle USA was approved to grant 100% SBA-guaranteed Paycheck Protection Program (PPP) loans. The program provides small businesses with forgivable loans of up to $ 10 million to cover salary costs, rent, mortgage interest or utilities. While Funding Circle was approved by the SBA to extend these loans, the program has been strapped for cash ever since.