Government re-invests in Funding Circle to tune of £40m
The government-backed British Business Bank has pledged to lend to small businesses through the peer-to-peer funding platform
Funding Circle, the peer-to-peer (P2P) lending platform founded by Growing Business Young Guns, has secured an additional £40m from the UK government to ensure that the Brexit vote doesn’t impact upon small business credit.
Having previously lent £60m to Funding Circle to support some 10,000 small firms, the British Business Bank has now promised to channel £40m through the platform.
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Founded in 2010 by Andrew Mullinger, Samir Desai, and James Meekings, the Funding Circle platform connects individual investors, and institutions such as the government, with small businesses in search of loans ranging from £5,000 to £1m.
It operates across the UK, Germany, America, Spain, and the Netherlands and has now facilitated over £1.8bn in loans to more than 19,000 small businesses.
Funding Circle has said that this new deal is “proof” that it can help the UK economy if it turns due to uncertainty surrounding the Brexit vote.