Funding Circle launches in Nevada
Alternative business lender Funding Circle has launched in Nevada, enabling it to provide the state’s more than 280,000 small businesses with access to capital.
Funding Circle now offers loans to businesses in all 50 US states and Washington, D.C.
Securing capital funding in Nevada has historically been difficult for small businesses.
According to the Nevada Small Business Development Center’s 2022 Small Business Challenges Survey, nearly 60 per cent of respondents reported that securing debt and capital to finance their business was a challenge.
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“With Funding Circle now offering small business financing in Nevada, business owners in the state have newfound access to quicker, lower cost capital from a responsible, state licensed and regulated lender that will allow them to grow and scale their businesses and create jobs in the state”, said Ryan Metcalf, head of public policy and social impact at Funding Circle US.
“This is a win-win for both residents and small business owners. Businesses will have greater access to capital than ever before, and residents will get to have a say about what happens in their neighbourhoods”, said Nevada State Senator Pat Spearman, a sponsor of the legislation that made it possible for online lenders to offer funding to businesses in the state.
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Since 2010, Funding Circle has originated $4.1bn (£3.6bn) to 40,000 small businesses in the US and $19.4bn to 130,000 globally.
The announcement follows a recent Federal Reserve study showing that Funding Circle has been able to expand credit access to underserved small business owners who are not likely to receive funding from traditional lenders, noting it has done so at a lower cost to borrowers.
Funding Circle’s UK business exited the peer-to-peer lending space earlier this year.