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Updated: Mar 26, 2020
A Whole New World for Small Businesses
The current global pandemic caused by COVID-19 is affecting hundreds of thousands of people. It is also having a growing impact on the worldwide economy that is being felt most acutely by small businesses.
At Funding Circle, we’re here to help. Keep reading for tips and resources to help you stay informed. Continue to visit our Resource Center for relevant news, information and data.
What We Are Doing
Our priority is to get capital to small businesses as quickly and safely as possible. Here’s what we are doing at the federal level to make that happen.
As the world’s largest online small business lender, we are working tirelessly to make sure responsible state licensed and regulated lenders like Funding Circle are included in any legislative program to help save small businesses and jobs.
The Senate’s “Coronavirus Aid, Relief, and Economic Security Act” includes our eligibility to participate in the Treasury Small Business Interruption Loan Program.
This bill proposes the best solution to getting small businesses access to responsible capital as quickly as possible by leveraging the speed, distribution and capacity of online small business lenders such as Funding Circle. The 100% government guarantee also ensures that as many small businesses get access to loans as possible and for small businesses that keep employees on the payroll, all or part of the loan can be forgiven. We are focused on making sure this gets over the line.
Lastly, Congress may choose to fund the State Small Business Credit Initiative (SSBCI) Capital Access Programs as the Treasury did through the Jobs Act in 2010. These are federal funds administered by states similar to that of the SBA. However, the 2010 legislation specified that “only insured depository institutions, insured credit unions, or community development financial institutions as defined in section 103 of the Riegle Community Development and Regulatory Improvement Act of 1994 are eligible to participate” which excludes state licensed and regulated lenders like Funding Circle.
We will be focused on making sure that we are eligible to participate in this program if Congress decides to fund it again. If we are included, we will be able to offer loans to more small businesses, especially underserved small businesses.
While we are in the midst of an unprecedented crisis, this is an opportunity for us to help save our economy. We are in a position of great responsibility, Funding Circle is standing together to answer the call to help save the dreams of entrepreneurs and jobs of a quarter million Americans.
Please find the complete list of government programs below
While health and government officials are working together to maintain the safety, security, and health of the American people, small businesses are encouraged to do their part to keep their employees, customers, and themselves healthy. We are sharing this guidance from the Small Business Administration with you in hopes it will help you protect yourself, your employees, your customers, and your business:
by Catie Edmondson, The New York Times, 3/25/20
“Small businesses will receive emergency loans if they keep their workers.”
by Elizabeth Wasserman, Bloomberg, 3/25/20
“The massive stimulus package negotiated between the Trump administration and congressional leaders early Wednesday is an unprecedented $2 trillion aid package designed to help the public and the economy to rebound from the coronavirus pandemic.”
by Anna Hrushka, Banking Dive, 3/26/20
“Ryan Metcalf, head of U.S. regulatory affairs and social impact at Funding Circle, told Forbes nonbank online lenders have a critical role to play in the crisis. ‘Funding Circle approves loans in under 24 hours and funds them in three days, whereas banks take on average a little over a month,’ he said. ‘Looking at SBA disaster relief funds, it’s over 30 days for those.’”
Early Wednesday morning, a $2 trillion stimulus package was passed by the Trump administration and congressional leaders. More than $350 billion dollars will be allocated towards aiding small businesses. Businesses with less than 500 employees will be able to apply for an emergency loan under the Paycheck Protection Program. Fintech leaders will be eligible lenders in this program to provide relief to most small businesses as quickly as possible.
We’ve put together a dedicated COVID-19 section on our Resource Center. We’ll continue to update this section with more updates and helpful articles.
Is there a prepayment penalty or fee?
No, we won’t charge you extra to pay your loan off early. Plus, you only have to pay interest for the time you borrow — so if you pay it off early, you pay less.
If I make a manual payment before my automatic payment, will my automatic payment also go through?
Yes, we will continue to process your automatic payments every month unless you specifically ask us to stop them. Please let us know of any changes at least 5 days in advance of your automated payment date in order for the change to be updated in our system. You can still make a manual payment, but it will be in addition to the automatic payments.
How do I make an additional payment?
You can make an additional payment at any time by calling and requesting a one-time electronic transfer. Please note that we are unable to accept multiple daily electronic transfer payments. You may also be able to set up one-time or recurring wire transfers or check payments from your bank account, although some banks may charge a fee for this service. Additionally, if you’d prefer, you can make additional payments by mailed check.
You may use these processes to break up your monthly payments into multiple, smaller payments. However, be sure that the full monthly payment amount is received by the due date to avoid late fees.
Where can I find my payment history and current loan balance?
You can view your payment history and current loan balance by logging into your dashboard. Unfortunately, we cannot yet accept payments in the dashboard. You can also contact us with any questions, including inquiries about your payment history and current loan balance, at email@example.com or (866) 679-7966.
What if there is an issue with my statement?
If you think there’s an issue with your statement, we want to help correct it right away. Please email or call us at firstname.lastname@example.org or (866) 679-7966.
What should I do if I think I’m going to miss a payment?
If at any time you believe that you may not be able to make one or more repayments, please contact us immediately.
If you miss a payment or only partially pay the amount due, we (or an agent acting on our behalf) will contact you and ask you to explain why and will attempt to collect the payment. If you’re unable to make the payment, your account will be overdue. If your monthly payment is more than 10 days late, we may charge a late fee of up to 5% of the payment amount. The late fee will be payable immediately and is in addition to the missed payment.
Save in exceptional circumstances (such circumstances being deemed exceptional by Funding Circle in its absolute discretion from time to time), if you miss, fail to pay or only partially pay, three or more consecutive monthly installments or four out of six consecutive monthly installments, or if you otherwise fail to comply with any term or condition of the loan agreements, the loan may be placed into default. We will notify you of the default, and our intent to collect all amounts owed from the business and, if necessary, the personal guarantor(s).
If your loan is placed into default we may charge fees to cover tracing charges, field agents’ costs, litigation costs, expenses and other such third party fees incurred by Funding Circle in the course of protecting the interests of the investors who lent to the business.
Is there a late fee for missed payments?
If your monthly payment is more than 10 days late, we may charge a late fee of up to 5% of each missed payment amount. The late fee will be payable immediately and is in addition to the missed payment.
For a full list of FAQs, please see HERE.
At Funding Circle, our goal is to help small businesses like yours grow, create jobs, support local communities, and drive the economy forward. If you are currently a Funding Circle customer, please reach out to us at 1-866-679-7966 or email us at email@example.com. If you are new to exploring Funding Circle, welcome!
Jessica Holcomb is the Content Marketing Manager at Funding Circle, specializing in small business marketing and social media. She has a degree from the Fashion Institute of Design and Merchandising. Prior to Funding Circle, Jessica was a Marketing Manager at a successful social games company and a freelancer for many small businesses in the Bay Area. Her work can be seen in top retail, gaming, and financial small business resource sites.