Funding Circle will be offering first and second draw Paycheck Protection Program (PPP) loans.
Since the peer-to-peer lending platform’s US division was accredited to the PPP scheme in April, it has approved nearly $1bn (£732.4m) in PPP loans to thousands of American small business owners, helping to protect more than 112,000 jobs.
Small businesses, including self-employed, sole proprietors, independent contractors, partnerships and seasonal businesses, that have not received a first draw PPP loan under the scheme will be eligible to apply for a second draw loan from the platform.
The second draw PPP loans, which were signed into law as part of the Economic Aid to Hard-Hit Small Businesses, Nonprofits and Venues Act in December, generally mirrors the rules for the first draw PPP loans.
Small businesses with less than 300 employees that received a first draw PPP loan from any lender will be eligible to apply for a second draw loan through Funding Circle if they can demonstrate a 25 per cent or greater reduction in revenue.
PPP makes available $284bn in federally guaranteed, up to 100 per cent forgivable loans for small business owners, helping to cover an array of payroll and operational expenses, as the pandemic continues to put stress on their businesses.
“We remain fully committed to supporting small business owners through this historic health and economic crisis,” said Ryan Metcalf, head of public policy and regulatory affairs at Funding Circle.
“We are pleased that Congress has reauthorised more funding, as additional relief is desperately needed, particularly for smaller businesses, many of which were unable to access funds in the initial PPP rounds.”
Funding Circle is a founding member of the Responsible Business Lending Coalition, a network of non-profit and for-profit lenders, investors and small business advocates that share a commitment to innovation in small business lending.