Funding Circle offers first and second draw PPP loans
Funding Circle will offer Paycheck Protection Program (P3) first and second draw loans.
The American division of the peer-to-peer lending platform being accredited to the PPP program in April, it approved nearly $ 1 billion (£ 732.4 million) in P3 loans to thousands of US small business owners, helping to protect more than 112,000 jobs.
Small businesses, including freelancers, sole proprietors, independent contractors, partnerships and seasonal businesses, that have not received a first PPP loan under the program will be eligible to apply for a second draw loan on the platform. .
The second drawdown of PPP loans, which was signed under the Law on Economic Assistance to Small Businesses, Nonprofits, and Hard-Affected Sites in December, generally reflects the rules for the first drawdown of PPP loans.
Small businesses with less than 300 employees who received a first PPP loan from any lender will be eligible to apply for a second loan through Funding Circle if they can demonstrate a 25 percent or more reduction in their income. .
PPP is making $ 284 billion in federally guaranteed loans of up to 100% available to small business owners, helping to cover a range of payroll and operating costs as the pandemic continues to weigh on on their businesses.
“We remain fully committed to supporting small business owners during this historic economic and health crisis,” said Ryan Metcalf, head of public policy and regulatory affairs at Funding Circle.
“We are pleased that Congress has re-authorized more funding, as more help is desperately needed, especially for small businesses, many of whom were unable to access funds in early P3 cycles.”
Funding Circle is a founding member of the Responsible Business Lending Coalition, a network of not-for-profit and for-profit lenders, investors, and small business advocates who share a commitment to innovation in small lending. companies.