The lending platform’s US operation will help distribute cash to SMEs after being approved to join the US Government’s efforts to help firms.
Funding Circle has been approved by to lend money to small businesses in the US, in a loans scheme backed by the US Federal Government.
The U.S. Small Business Administration (SBA) and U.S. Treasury have greenlighted Funding Circle’s US platform to originate Paycheck Protection Program (PPP) loans.
These are “100% guaranteed by the SBA”, Funding Circle said in a stock market update.
“The program provides small businesses with forgivable loans up to $10 million to cover payroll costs, rent, mortgage interest, or utilities,” it added.
Funding Circle’s share price bounced 9 per cent on the news at the time of writing.
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UPDATE 3: Which fintechs are offering government-backed CBILS, CLBILS or Bounce Back loans?
21 May 2020
Aisling Finn