British Business Investments announce £30 mn to support UK SMEs through Funding Circle’s Direct Lending Fund
By Megha Bhattacharya
British Business Investments, a commercial subsidiary of the British Business Bank, today announced a £30 million commitment to support UK small businesses through Funding Circle’s UK SME Direct Lending Fund.
Sachin Patel, Chief Capital Officer of Funding Circle said, “By investing in our fund, investors can earn attractive risk-adjusted returns whilst contributing to economic growth and job creation. This latest support from British Business Investments demonstrates the vital role FinTechs play in facilitating loans to small businesses whatever the weather. We look forward to welcoming more investors in the near future.”
The UK SME Direct Lending Fund offers institutional investors, including pension funds, insurance companies and local authorities, the opportunity to lend directly to a diversified portfolio of SMEs originated by Funding Circle. Following Funding Circle’s accreditation to lend under the Coronavirus Business Interruption Loan Scheme (CBILS) in April 2020, the Fund was subsequently given approval to expand its investment strategy to include investing in CBILS loans.
Judith Hartley, CEO, British Business Investments said, “One of the objectives of British Business Investments is to support the development of diverse finance markets. We have supported the growth of FinTech and marketplace lenders since its early stages, and lenders like Funding Circle help provide competition and choice to smaller businesses. By making this commitment, more smaller businesses across the UK can get the finance they need to fulfil their growth potential.”
Recently, Starling Bank collaborated with UK-based small business loan platform, Funding Circle in a bid to offer £300 million of loans to SMBs under the Coronavirus Business Interruption Loan Scheme (CBILS). Starling aims to support around 4000 SMBs with access to finance, by lending through Funding Circle and other institutional lenders.
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