Funding Circle teams up with EIB to help small businesses
Peer-to-peer lending company Funding Circle has partnered with the European Investment Bank (EIB) to support small businesses by increasing loans.
The partnership, which comes just a few days before the EU referendum, is expected to provide £100 million worth of loans for small businesses. This will be the first time that the EIB has provided lending through a peer-to-peer company.
The deal was described by the EIB as “an important new channel to stimulate the real economy".
It aims to unlock more than £200 million in additional funding over the next seven years when combined with £25 million from the Funding Circle SME Income Fund.
Funding Circle first launched in 2010, and has since lent more than £1.25 billion to 16,000 businesses in the UK.
Commenting on the partnership between Funding Circle and the EIB, Funding Circle co-founder Samir Desai said: “Our partnership with the European Investment Bank is the first of its kind and represents another important step on our journey to creating a global marketplace where creditworthy businesses borrow from a diverse range of investors.”
He stated that the significant investment will ensure that more businesses have access to the finance that they need in order to grow, adding that it will “help support economic growth and job creation across the UK.”