Small business loans platform Funding Circle has been approved by the British Business Bank under its Coronavirus Business Interruption Loan Scheme.
The scheme is part of the UK government’s response to the covid-19 crisis to provide capital to businesses that are in difficulty as a result of ongoing restrictions designed to limit the spread of the virus.
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Funding Circle is expected to open applications for CBILS within the next week after legal and operation approvals are completed.
Keith Morgan, chief executive of the British Business Bank, said: “Our accredited lenders have seen an incredible demand for CBILS since the scheme became available. As the first newly accredited marketplace lending platform to be accredited under CBILS, Funding Circle will be able to provide more capacity, more choice and most importantly, vital funding for smaller businesses across the UK.”
CBILS can provide financing to businesses with an annual turnover of up to £45 million and loans are guaranteed by the British government. There are currently more than 40 lenders already offering loans through the scheme of up to £5 million in the form of business loans, overdrafts, invoice finance and asset finance. The first 12 months of interest and lender fees are covered by the government.
British Business Bank said 80 percent of UK small businesses already have a relationship with CBILS lenders and it is accelerating the onboarding of new lenders to extend the reach of the scheme. It said it is reviewing applications from banks, platform lenders, debt funds, invoice finance lenders, asset-based lenders and responsible finance lenders.
The platform will join more than 40 lenders in supporting UK businesses through the crisis.