Funding Circle has shifted its focus as it becomes the first peer-to-peer lender to be accredited under the Coronavirus Business Interruption Loan Scheme (CBILS).
The platform said it will pause all non-CBILS lending from retail and institutional investors to concentrate on supporting the government programme until further notice.
It has been approved to provide term loans to borrowers that will be funded by Funding Circle and a combination of new and existing institutional investors.
Read more: Funding Circle approved for US loans package
An update from the P2P business lender said retail investors cannot back the loans but will continue receiving repayments from existing borrowers with funds returned on a monthly basis.
The lender also said it has withdrawn its financial guidance for 2020 due to increased uncertainty in the market but remained focused on profitable growth.
“Small businesses are the heartbeat of our economy but many find themselves in need of financial support during this time of crisis,” Samir Desai (pictured), chief executive of Funding Circle, said.
“Funding Circle is uniquely positioned to use its advanced technology, risk and data analytics platform to help distribute funds to small businesses during this time of crisis.
“We stand ready to play our part now we have been accredited to both the UK and US government small – and medium-sized enterprise lending programmes.”
Keith Morgan, chief executive of the British Business Bank, said Funding Circle will provide more capacity, more choice and “most importantly, vital funding for smaller businesses across the UK.”
Other P2P lenders such as Assetz Capital and JustUS are still waiting on their applications.