Funding Circle to lend £100m to SMEs

Funding Circle to lend £100m to SMEs

The European Investment Bank (EIB) has agreed to a £100m investment in loans to UK SMEs originated through Funding Circle.

The investment, along with £25m from the Funding Circle SME Income Fund, will allow over £200m of new loans over the next seven years.

The partnership also represents the first deployment of EIB funding through a direct lending marketplace to support small businesses and therefore improves the access to finance for SMEs.

“This new and exciting partnership with Funding Circle demonstrates the European Investment Bank’s firm commitment to seeking out new ways to stimulate business investment across Europe,” Jonathan Taylor, Vice President of the European Investment Bank, stated.

“The £100m backing will not only unlock over £200m of new investment by small businesses across the UK, but also provides an innovative model for supporting SMEs that could be used elsewhere in Europe.” 

Samir Desai, CEO and Co-Founder of Funding Circle, described the partnership as a ‘first of its kind’.

“It represents another important step on our journey to creating a global marketplace where creditworthy businesses borrow from a diverse range of investors. 

“This significant investment will ensure more businesses access the finance they need to grow and will help support economic growth and job creation across the UK.”

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