The Government-backed British Business Bank programme announces plans to lend a further £40 million through Funding Circle

In three and a half years since we launched, thousands of British people, as well as organisations such as local councils and universities, have helped to lend over £220 million to 4,000 businesses. We are currently lending an average £5 million worth of loans per week.

Last March the Government began lending to British small businesses through Funding Circle, as part of its Business Finance Partnership scheme. Government involvement has played an important role in increasing awareness of Funding Circle in the business community.

Today we’re pleased to reveal that they have nearly lent out their entire £20 million commitment to over 2,000 businesses across the country, helping to create an estimated 6,500 jobs. We’re also pleased to confirm that the Government-backed British Business Bank Investment Programme has decided to invest a further £40 million alongside private investors. It’s worth noting that there is still a week’s worth of money left from the original £20 million so you will see loans part-funded by the Government this week (24th February).

The British Business Bank Investment Programme is a part of the British Business Bank programme, which is currently run directly by the Department for Business, Innovation and Skills and is not authorised or regulated by the Financial Conduct Authority or the Prudential Regulation Authority. British Business Bank plc will operate as a Government-owned financial institution once HM Government has received European Commission State aid clearance, which is expected in 2014.

The objective of the British Business Bank programme is to support economic growth by bringing together public and private sector funds to create more effective and efficient finance markets for smaller businesses in the UK.

The investment through the Funding Circle platform is made alongside investors from the private sector on equivalent terms and represents the final 10% of funding requested by a borrower, once private sector lending has reached 90% of the requested amount. The British Business Bank programme’s funding does not provide an endorsement, recommendation or any warranty, either expressed or implied, about the creditworthiness of a borrower or the activities and procedures of Funding Circle, and its funding has the same risk of loss as for any private sector investor.

Neither the British Business Bank programme, the Department for Business Innovation and Skills nor any other government department or agency is involved with the operation or management of Funding Circle.

This further lending commitment recognises the contribution that non-bank channels, such as Funding Circle, can play to help ease the flow of finance to businesses.

News

Natasha Jones

Communications Manager

 
  • http://www.englishshoemakers.co.uk. peter bullock

    hi .i would like to talk to someone regarding supporting my business growth and the suply of the right finance.

    • fundingcircle

      Hi Peter, thanks for your interest. Our business page has details of what we offer and how to apply: https://www.fundingcircle.com/businesses or you can give the team a call on 0207 401 9111.

  • Brian Simpson

    My partner and I started a contract cleaning company in September of last year, we are at a point where we need to grow and this sounds like what we need, how do we go about applying?

    • fundingcircle

      Hi Brian, thanks for your message. Unfortunately you’ll need at least 2 years of trading history & accounts to apply. Hopefully we’ll be able to help in the future, and best of luck until then.

  • Christine George

    I would like to find out how Funding Circle is regulated and if they are, what licences had to be obtained to before it could begin operations.

  • Rick

    We run a Web based sports administration application and we have an opportunity to put the software into schools in the UK but we ned to spend on software development (sub £100k). The business has been operating since 1999 and has been a Ltd. company since 2006. It has no existing loans. Would our business potentially be able to benefit from crowd sourced funding?

  • Daimont

    I want to start a web based business providing information products through social media … There are guarantees in place with the j/v partner if the business fails … But i have to have the capital to start with. Around K20. Would i be eligible for a start up loan or crowd funding. I have a dormant ltd company already set up and waiting to go … Yours and Thank-You David

    • Becky

      Thanks for your message. Unfortunately only established businesses with 2 years of trading can apply for a loan. Best of luck for the future.

  • Scott Clark

    Hi I’m Scott Clark
    I want to start up my own outside catering business .. Starting off with events shows and food markets and to lead on to private parties weddings .i have a name for the business ( grab gourmet ) and got a good slogan .. Good quality food taste better
    My concept is top quality gourmet food served on the go .. I’m looking for help to get me out there .. I’ve been a chef all my working years over 20 years and I think it is time to work for myself
    Because my policy in life is what you put in you get out ..

    Thank you for reading this and I hope you can help me
    Scott Clark

    • Becky

      Hi Scott, thanks for your interest. Unfortunately only established businesses can apply for funding through Funding Circle. We wish you all the best with your start up. The Funding Circle team

  • Industrial Desiger

    Be careful, hopeful entrepreneurs !. New concepts need good soil – but here and there are
    no more Mr NIceguys ! Bit like the cruel & sadistic Dragons’ Den ..

  • jamie hoy

    I’m looking for funding to expand my plumbing g and heating business I’ve been trading as a sole trader for just over 12 months.im looking to expand into a proper business and looking for funding to do this.

  • MEMIKO

    I am planning to buy a coffee shop in North London. Weekly taking is 6.5k. Owner wants 200k for the shop. I only have 50k. I am looking for funding for the remaining amount.

  • http://www.loveaslice.com Ash

    Hello, we have a Cheesecake shop in Beckenham tradin for 3 years and very very busy. Apart from over 30 varities of Cheesecake sellin by the slice we also sell 100 milkshakes a day and other desserts. We would like to expand but need fundin. What is the best way to get looked at pls? The Cheesecake Family