UK’S small firms set for £150m lending boost

The British Business Bank (BBB) has confirmed a commitment of up to £150 million for lending to UK small businesses through listed global small business loans platform Funding Circle.

The transaction aims to accelerate lending to such firms and is expected to support the growth of more than 2,000 UK companies.

The new facility will provide senior financing to a transaction with the Funding Circle SME Income Fund Limited, a publicly traded fund that lends exclusively through Funding Circle. And the new commitment extends the existing partnership between the platform and the UK Government. Since March 2013, £165m has been lent directly to the small business ecosystem through Funding Circle using the BBB’S programmes.

Sachin Patel, chief capital officer at Funding Circle, said: “This significant commitment further strengthens our successful partnership with the [BBB].”