Loans platform boosted by £150m government-backed SME fund
A £150m lending boost will be provided to UK small businesses after the money was made available by the British Business Bank through loans platform Funding Circle.
The transaction, under the government-backed bank’s ENABLE Funding programme, is expected to support the growth of 2,000 UK businesses.
It extends that existing partnership between Funding Circle and the government, where £165m has been lent directly to small businesses through the platform.
“We have supported the growth of peer-topeer lending as a model since its earliest stages,” said British Business Bank CEO Keith Morgan.
“It helps provide welcome choice and competition and we are pleased that this part of the market continues to expand significantly, with volumes increasing by a further 51% in 2017.”
The platform was set up to provide small business loans as a asset class, with some £5.6bn lent through it across UK, Germany and The Netherlands.