Funding Circle, DreamSpring partner to increase access to capital for small business owners
By Edlyn Cardoza
Funding Circle, one of the nation’s leading online small business loans platforms, and DreamSpring, a nonprofit community development financial institution (CDFI) with nearly 30 years of experience in community lending, have launched a new partnership to increase access to funding for small business owners in underserved communities across the nation. The new partnership aligns with both organisations’ shared commitment to advancing entrepreneurship and innovation by providing equitable access to capital to small businesses.
Through this lending-as-a-service program, DreamSpring will be able to expand its distribution and impact throughout the nation and originate more loans faster and at a lower cost, all while ensuring a seamless experience for customers. DreamSpring small business customers who apply through the co-branded application portal will receive one-on-one support from a dedicated Funding Circle Account Manager, an approval decision in a matter of hours and access to funds in as few as 48 hours.
“We are excited to offer financial institutions our customisable end-to-end lending platform and technology that we have spent the last 12 years developing,” said Angus Sanders, Chief Revenue Officer of Funding Circle US. “We look forward to seeing the positive impact our partnership with DreamSpring has on communities across the country, especially those underserved.”
“At DreamSpring, we lend at the intersection of mission, technology, and heart. Our relationship with Funding Circle will be transformational—empowering entrepreneurs to rapidly access funding necessary for job creation and small business growth,” said Francisco Lopez, Chief Operations and Innovations Officer at DreamSpring. “Together, we will provide the flexibility and resources small business owners need to navigate today’s changing economic climate.”
Funding Circle is committed to helping small businesses get the funding they need to thrive by working closely with financial institutions—including national, regional and community banks and community development financial institutions (CDFIs)—to achieve this mission, most recently launched a small business lending-as-a-service partnership with Pitney Bowes.
A study published by the Philadelphia Federal Reserve this year 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.