Government participation in loans reducing to 10%
In March, the Government started lending to businesses through Funding Circle and until now, they have funded 20% of every loan that has appeared on the marketplace. From Friday 1st November, this figure will decrease to 10% of every loan.
Since they started lending through Funding Circle, they have lent more than £15 million to 1,100 businesses and played a big role in helping us to raise awareness and understanding of what we do.
We are hopeful that the Government will consider continuing to lend to businesses once they have lent out their £20 million allocation and we will keep you updated with any progress on this.
Our aim is to facilitate hundreds of millions of pounds of loans to British businesses every month in the next few years, and to do this we will require more sources of money from a variety of organisations. In November we are likely to see some of these new sources of finance start lending following the reduction in the percentage of Government funds. We will provide further information on this as timings become clearer.
People lending directly to businesses through Funding Circle have always been the core of what we are about and we will ensure this continues as we keep growing.