Funding Circle has joined the long list of accredited lenders to participate in the Government-backed Coronavirus Business Interruption Loan Scheme (CBILS), it has been announced.
The small business loans platform joins the Co-operative Bank, Cynergy Bank, OakNorth Bank and over 40 other lending organisations to deliver the assured loan scheme.
According to the British Business Bank, the approval of Funding Circle now means more than 80 per cent of UK small businesses have an existing finance relationship with at least one approved lender.
Welcoming the organisation, Keith Morgan, CEO at the British Business Bank, said: “Our accredited lenders have seen an incredible demand for CBILS since the scheme became available.
“As the first newly accredited marketplace lending platform to be accredited under CBILS, Funding Circle will be able to provide more capacity, more choice and most importantly, vital funding for smaller businesses across the UK. This accreditation continues the British Business Bank’s long-term support for the growth of marketplace lending since its earliest stages.”
Under the CBILS, approved lenders can provide finance facilities of up to £5 million per small and medium-sized enterprise (SME) to help cover cash flow during Covid-19 disruption. The Government will provide an 80 per cent guarantee against the outstanding facility balance, as well as cover the first 12 months of interest payments and any lender-levied fees.
The Government has also asked lenders to not take any form of personal guarantee for facilities below £250,000, while personal guarantees above £250,000 will be capped at a maximum of 20 per cent.
It means that small businesses will have “no upfront costs and lower initial repayments” for the first year.
If you need independent legal advice on CBILS documentation, please contact a member of our Banking & Lending Team by following the following link:
