EIB and Funding Circle partner to generate £100m for UK small businesses
New partnership will increase loans for small firms and could facilitate an additional £200m funding for businesses over the next seven years
Funding Circle and the European Investment Bank (EIB) have agreed on a partnership that is expected to see £100m worth of loans injected into UK small businesses.
This is the first time EIB has deployed funding through a direct lender to support small business, and alongside £25m from the Funding Circle SME Income Fund, intends to unlock more than £200m in additional funding over the next seven years.
The deal is said to represent an “an important new channel to stimulate the real economy”.
Since launch in 2010, Funding Circle – founded by Growing Business Young Guns Samir Desai, James Meekings, and Andrew Mullinger – has lent more than £1.25bn in loans to 16,000 businesses in the UK.
In 2014, the company raised $65m in Series D funding from Index Ventures and has been on a growth incline over the last two years.
Funding Circle’s Desai commented: “Our partnership with the European Investment Bank is the first of its kind and represents another important step on our journey to creating a global marketplace where creditworthy businesses borrow from a diverse range of investors.
“This significant investment will ensure more businesses access the finance they need to grow and will help support economic growth and job creation across the UK.”