Lending

European Investment Bank pledges 100m funding for small British firms

Business lending marketplace Funding Circle has announced a partnership with the European Investment Bank (EIB) which will see 200m available to small firms over a period of seven years.

The 100m the EIB is committed to providing will be bolstered by additional funding from the Funding Circle SME Income Fund, and the partnership is the first time that the organisation has channelled funds through a direct lending marketplace.

investment by small businesses drives economic growth, and simple, efficient access to finance is essential to help small companies to expand, create jobs and harness new opportunities. This new and exciting partnership with Funding Circle demonstrates the European Investment Bank’s firm commitment to seeking out new ways to stimulate business investment across Europe, said EIB vice president Jonathan Taylor.

the 100m backing will not only unlock over 200m of new investment by small businesses across the UK, but also provides an innovative model for supporting SMEs that could be used elsewhere in Europe.

Since launching in 2010, Funding Circle has loaned 1.25bn to 16, 000 UK business owners. When its founders created the SME Income Fund in July 2015, they became the first P2P platform to do so. In addition to the new EIB funding, they have previously secured 60m of loanable funds from the British Business Bank.

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, said Samir Desai, CEO and co-founder of Funding Circle.

this significant investment will ensure more businesses access the finance they need to grow and will help support economic growth and job creation across the UK, he added.