Funding Circle granted small business lending licence in the US
Funding Circle has been awarded a small business lending company licence in the US to participate in the Small Business Administration’s loan program.
The UK-based small business loan provider will begin offering SBA 7(a) small loans next year. This means that small businesses looking for financing up to $500,000 can apply to Funding Circle. The SBA 7(a) program guarantees up to $36bn a year in small business loans up to $5m. Just 25 lenders are currently responsible for half of the loans. This is the first time in decades the SBA has expanded its primary business loan program.
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“We are excited to help more small businesses in the US get the funding they need to win,” said Steve Allocca, managing director at Funding Circle US.
“By leveraging our advanced data and technology platform and providing a superior customer experience, Funding Circle is well positioned to become the #1 SBA lender in the country for 7(a) Small Loans under $500,000 by providing creditworthy small businesses in low-moderate income neighborhoods and rural areas access to affordable capital to start, run and grow their businesses.”
In a statement, Funding Circle pointed out that more than 50 per cent of banks have imposed stricter lending criteria on small businesses, disproportionately affecting minority-owned enterprises.
Founded in 2010, Funding Circle has originated $4.5bn to 45,000 small businesses in the US to date. Globally, it has originated $21.1bn to 143,300 small businesses.
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