European Investment Bank commits £100 million to British small businesses through Funding Circle
Today we’re pleased to reveal that the European Investment Bank (EIB) has now committed £100 million to lend to British small businesses through Funding Circle. This investment, alongside £25 million from the Funding Circle SME Income Fund, will enable over £200 million of new loans over seven years, and provides a further injection of much-needed funding into the UK small business sector.
Over the past 10 years, the EIB has provided more than £3 billion of investment to UK small businesses, but this landmark deal is the first time the EIB has supported small businesses through a direct lending platform like Funding Circle. Today’s news is recognition of the role marketplace lending is playing in helping small businesses to access finance efficiently.
Since launching Funding Circle 6 years ago, 15,000 UK businesses have accessed £1.3 billion of business finance, helping them to grow and prosper. Investors are now lending alongside 50,000 people in the UK, local and national government and a range of financial institutions including pension funds.
The UK Government began lending to small businesses through the platform in 2013, committing £20 million initially and then a further £40 million through the British Business Bank programme in 2014. There are also 19 local authorities lending to small businesses through the marketplace.
Our ambition is to create a platform where any investor, big or small, can lend to small businesses. In the last economic downturn, small businesses suffered the most because they could only access finance through a handful of high street banks. This wouldn’t be the case today – already at Funding Circle, there is a range of different types of investor lending through the platform. This diversity will ensure small businesses can continue to grow and expand, and means the marketplace is more sustainable in the long term.
If you have any questions, please get in touch or join the conversation on the forum.
The Funding Circle team