Funding Circle Closes $ 252 Million Securitization, Continues to Issue Loans to U.S. Small Businesses


SAN FRANCISCO – (COMMERCIAL THREAD) – Funding Circle, the leading small business lending platform in the UK, US, Germany and the Netherlands, today closed its second Asset Backed Securitization (ABS) of corporate loans. small American businesses from its platform. The $ 252 million deal is Funding Circle’s seventh corporate loan securitization in the world, and the second in the United States after a first securitization in August 2019.

The transaction is rated by two rating agencies, with its senior tranche rated A- by the Kroll Bond rating agency and A3 by Moody’s Investors Service. The oversubscribed transaction saw diverse demand from 25 institutional investors, ranging from asset managers and insurance companies to pension funds and sovereign wealth funds. Many investors are new to the SBIZ securitization program, demonstrating continued market confidence in small business loans from Funding Circle. More information on the transaction, Small Business Lending Trust 2020-A (SBIZ 2020-A), will be available on dv01 and Bloomberg.

“Funding Circle’s second securitization in the US strengthens our commitment to providing institutional investors with access to this category of investment, ”said Bernardo Martinez, US Managing Director of Funding Circle. “Through our global securitization program and sponsorship capacity, we are able to provide diversified financing to small businesses and provide capital to this extremely underserved segment of borrowers.

Funding Circle brings together cutting-edge risk management policies and cutting-edge technology, enabling investors to achieve attractive risk-adjusted returns by supporting established and creditworthy companies. To date, Funding Circle has provided loans to more than 14,000 US companies, with US borrowers currently averaging 11 years in business and $ 1.4 million in annual sales. In the United States, Funding Circle totaled $ 2 billion in cumulative loan origination and $ 1 billion in loans under management, meaning that in the United States, the company has more small business loans outstanding than almost 98% of banks.1

With small businesses employing about half of the U.S. workforce2, this loan helps to boost the economy by expanding access to financing at competitive and transparent prices. Oxford Economics found that in 2018 alone, loans through Funding Circle contributed $ 2.8 billion (measured as “gross value added”) to the US economy and created and maintained 38,000 US jobs.

About the fundraising circle

Funding Circle (corporate.fundingcircle.com) is a global small business lending platform. Since its launch in 2010, more than 72,000 small businesses have borrowed $ 10.2 billion in Funding Circle’s four geographies: the UK, US, Germany and the Netherlands. Investors on the Funding Circle platform include more than 90,000 retail investors, banks, asset management companies, insurance companies, government backed entities and funds.

1Federal Deposit Insurance Corporation (FDIC) statistics on deposit-taking institutions. March 2019. “Amount of commercial and industrial loans currently outstanding of less than $ 1,000,000 held in country offices. https://www5.fdic.gov/sdi/download_large_list_outside.asp.

2 US Small Business Administration Office of Advocacy 2018 Profile of Small Businesses in the United States. https://www.sba.gov/sites/default/files/advocacy/2018-Small-Business-Profiles-US.pdf

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