Funding Circle borrowers unlocked 75,000 jobs in 2017
A new report published by Oxford Economics reveals lending through Funding Circle, the global small business loans platform, unlocked 75,000 jobs in the United States and Europe in 2017.
Launched in 2010, Funding Circle facilitates lending from a wide range of investors to small businesses in the US, UK, Germany and the Netherlands. In 2017 investors lent $2.3 billion to small businesses across all four markets, contributing $5.2 billion to the global economy (measured in gross value added). For every £1 ($1.34) lent through the platform, an additional £2 ($2.68) was contributed to GDP across its four markets. In addition, the activity supported by these loans generated $1.8 billion in annual tax revenues in the United States and Europe.
A detailed look at the US:
Lending through the platform supported a contribution of $2 billion to the American economy in 2017 (measured in gross value added);
The report also found that these loans had a significant impact on the US labor market, with almost 28,000 jobs found to be powered by lending through Funding Circle in 2017;
This economic activity and employment supported $170 million in annual tax revenues.
This year Funding Circle is set to hire 400 people, bringing the total number of employees to 1,200 worldwide.
“It has become evident that small businesses are underserved in every country we operate,” Funding Circle co-founder and CEO Samir Desai said. “From butchers and bakers, to IT consultants and accountants, these are the businesses that are creating jobs, boosting productivity and driving our economies forward. The economic impact that these businesses have had as a result of accessing finance through Funding Circle is hugely rewarding to see.”
“The report highlights the growing importance of Funding Circle to small businesses in the wake of the financial crisis, which impaired traditional banks’ willingness and ability to lend, Oxford Economic director of economic consultancy Ian Mulheirn said. “As a result, small businesses have shown an increased appetite for other forms of finance, with online lending at the forefront of these options. Funding Circle is having a significant impact on employment across its four markets and boosting the economy on an impressive scale.”