To help minority-owned small businesses navigate the evolving lending landscape and secure the right financing they need to grow, Funding Circle, the world’s leading marketplace for business financing, has partnered with the Minority Business Development Agency (MBDA), a bureau of the U.S. Department of Commerce.
Through the partnership, Funding Circle’s small business experts will deliver a range of original financial education programs to minority business owners through MBDA’s national business center network. The materials will focus on access to alternative capital, business strategy and every business owner’s right to fair and transparent financing, as outlined in the Small Business Borrowers’ Bill of Rights.
“The success of minority-owned businesses is vital to a strong and sustainable U.S. economy, but too many of these great entrepreneurs simply don’t have access to affordable growth capital from traditional lenders,” said Sam Hodges, co-founder and US Managing Director of Funding Circle. “We believe small businesses deserve better and are proud to partner with the MBDA to help minority business owners understand their options and secure the financing they need to grow.”
There are eight million minority-owned business in the United States, and according to the MBDA, access to capital is the single most important factor limiting their establishment, expansion and growth.
“This incredible achievement demonstrates the power of public/private partnerships,” said Alejandra Y. Castillo, MBDA National Director. “New financing options, delivered through marketplace lenders like Funding Circle, have the potential to level the playing field for the nation’s minority entrepreneurs and business owners because lack of financing is the biggest obstacle they face.”
Through the Funding Circle marketplace, businesses looking to borrow up to $500,000 are matched with accredited individual and institutional investors. By bringing together industry leading risk management and cutting edge technology, Funding Circle’s proven marketplace model enables businesses to access affordable term loans with rates as low as 5.49 percent in under 10 days, compared to months with a bank.
About Funding Circle
Funding Circle (www.fundingcircle.com) is the world’s leading online marketplace for business loans, matching small businesses who want to borrow with investors who want to lend in the UK, the US and Europe. Since launching in 2010, globally investors at Funding Circle – including 47,000 individuals, financial institutions and even the UK Government – have invested $2 billion in 15,000 businesses. Funding Circle has raised $273m in equity capital from many of the same investors that backed Facebook, Twitter, Airbnb and Wealthfront.
MBDA (www.mbda.gov) is the only Federal Government agency dedicated to the growth and global competitiveness of U.S. minority-owned businesses. Its programs and services better equip minority-owned firms to create jobs, build scale and capacity, increase revenues and expand regionally, nationally and internationally. Services are provided through a network of MBDA Business Centers.