Funding Circle Makes History as Nondepository Institutions Secure SBA Lending Licenses After 40 Year

In a groundbreaking move, Funding Circle becomes one of the first nondepository institutions to receive an SBA lending license in 40 years. This historic win ushers in a new era for small business lending. Read more to uncover the details and implications.

The Small Business Administration (SBA) made a groundbreaking announcement on Wednesday, approving the application of Funding Circle to participate in its flagship lending program. This approval marks a significant milestone for the London-based firm, which has tirelessly advocated for access to the government lending vehicle. Joining the ranks of Arkansas Capital Corp. and Alaska Growth Capital BIDCO, Funding Circle becomes one of the first nondepository institutions to be granted new Small Business Lending Company (SBLC) licenses in over 40 years. The SBA's decision to end the moratorium on granting new licenses earlier this year has paved the way for these groundbreaking developments. Consequently, the program's nonbank lenders have expanded from 14 to 17 with the addition of these three new licenses.

Funding Circle Makes History as Nondepository Institutions Secure SBA Lending Licenses After 40 Years

This momentous achievement comes at a transformative time for Funding Circle's U.S. operations. The company has persistently lobbied for access to the government lending program, and this victory strengthens their position in the market. Additionally, Funding Circle has been actively supporting efforts to streamline the SBA's 7(a) program, promoting increased cost-effectiveness for lenders like themselves that specialize in smaller loans. Recognizing the need for adaptability and efficiency, the SBA has simplified its loan requirements and introduced more automation to streamline the lending process. By continually innovating and adapting, Funding Circle has demonstrated its commitment to providing accessible financing solutions to small businesses.

While Funding Circle has experienced numerous accomplishments throughout the year, they, like many banks and fintech companies, face challenges in navigating the current lending environment characterized by high interest rates. Despite this hurdle, Funding Circle remains resilient and is committed to finding innovative ways to cater to small business needs. They actively explore strategies to mitigate the impact of these high interest rates, ensuring that they can continue to support and empower entrepreneurs.

In the fiercely competitive world of business lending, Funding Circle has emerged as a game-changer, consistently pushing boundaries to meet the evolving needs of small businesses. With their approval into the SBA's flagship lending program, they have fortified their position as a trusted financing partner. This milestone not only opens doors for Funding Circle but also serves as a beacon of hope for other aspiring nondepository financial institutions seeking access to governmental lending programs.

Funding Circle's success story is a testament to their unwavering dedication, relentless advocacy, and commitment to fostering small business growth. With a firm foothold in the industry, they continue to pave the way for innovative lending solutions and shape the future of business financing.