Funding Circle and Farm Bureau Bank collaborate to boost small business lending
By Edlyn Cardoza
Funding Circle, an online small business lending platform, and Farm Bureau Bank, a financial institution focused on serving members of the Farm Bureau® and their neighbours in rural communities, have announced a partnership to provide capital to small business owners from all walks of life, including the agricultural community, across the country.
The partnership enables Farm Bureau Bank to purchase loans originated via Funding Circle, marking another step forward in a growing collaboration between Funding Circle and the banking community. The partnership combines the financial strength and longstanding client relationships of Farm Bureau Bank with the risk models powered by Funding Circle’s machine learning and technology platform to deliver high-quality loan products to small business owners.
“Our work with Farm Bureau Bank reflects our ongoing commitment to identifying and pursuing partnerships that allow us to support affordable funding options for diverse small business owners across a variety of sectors and needs,” said Vipul Chhabra, Managing Director of Funding Circle US. “We are excited about the positive impact this partnership will have on small business owners in communities throughout the country who play a critical role in supporting their local economies.”
A recent study published by the Philadelphia Federal Reserve found that Funding Circle has been able to expand credit access to underserved small business owners who are not likely to receive funding from traditional lenders and has done so at a lower cost to borrowers. The study also noted Funding Circle’s partnerships with community institutions made it possible for those banks to reach new customers during the pandemic. The collaboration between Funding Circle and Farm Bureau Bank will help mitigate the challenges many small business owners face when seeking access to working capital for their business. While Farm Bureau Bank has traditionally focused on serving rural communities, its partnership with Funding Circle will allow the bank to fund loans for small businesses across the country and all industries.
“For over 20 years, we have remained committed to providing banking services and support to Farm Bureau members in rural America and across the country. We are enhancing our commercial banking services to better support the financial needs of business owners throughout the communities our members live in,” said Will Hileman, President and CEO of Farm Bureau Bank. “Access to Funding Circle’s loans allows us to strengthen our investments in local communities by broadening the funding opportunities available to entrepreneurs and small business owners across the US.”
Recently, IBS Intelligence reported that Funding Circle and DreamSpring had launched a new partnership to increase access to funding for small business owners in underserved communities across the nation.
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