Funding Circle has become the first peer-to-peer lending platform accredited to the recovery loan scheme (RLS).
The small business loan platform will offer loans through the scheme alongside its existing commercial loan product, and said that firms can now apply for a loan on its website.
Funding Circle was the third largest provider of finance under the coronavirus business interruption loan scheme (CBILS), with lending through the platform estimated to have contributed £7.5bn to UK GDP and supported 100,000 jobs last year.
It is understood that the platform has a strong pipeline of interest from its customers for the RLS.
“We welcome the opportunity to support thousands of small businesses at this crucial moment in the UK’s recovery,” said Lisa Jacobs (pictured), Europe managing director of Funding Circle.
“Small businesses are the backbone of the economy, and with 70 per cent of our customers saying they require further funding, continued access to finance is more important than ever.”
“As the first marketplace lending platform to be accredited under the recovery loan scheme, Funding Circle will be able to provide further choice and vital funding for smaller businesses across the UK,” said a British Business Bank (BBB) spokesperson.
“Its accreditation continues the British Business Bank’s long-term support for the growth of marketplace lending.”
The BBB has also accredited West Midlands lender BCRS Business Loans to the scheme and yesterday approved Close Brothers.
Last week, the state development bank accredited Investec, Cynergy Bank, Atom and Metro Bank to the RLS.
There are now 30 accredited lenders listed on the BBB’s website for the scheme.
The BBB has invited all lenders that took part under CBILS to apply for accreditation under the RLS.
Stuart Law, chief executive of Assetz Capital, has previously told Peer2Peer Finance News that his P2P lending platform “certainly expects and hopes to be accredited very shortly”.
The RLS scheme, which can be used for any legitimate business reason and has have a maximum facility of £10m, provides loans from £1,000 for asset and invoice finance and from £25,001 for term loans and overdrafts.