05 July 2022
Online lending platform’s lending-as-a-service program expands nonprofit community development financial institution’s equitable lending reach and impact
Denver, July 5, 2022 – Funding Circle, one of the nation’s leading online small business loans platforms, and DreamSpring, a nonprofit community development financial institution (CDFI) with nearly 30 years of experience in community lending, have launched a new partnership to increase access to funding for small business owners in underserved communities across the nation. The new partnership aligns with both organizations’ shared commitment to advancing entrepreneurship and innovation by providing equitable access to capital to small businesses.
Through this lending-as-a-service program, DreamSpring will be able to expand its distribution and impact throughout the nation and originate more loans faster and at a lower cost, all while ensuring a seamless experience for customers. DreamSpring small business customers who apply through the co-branded application portal will receive one-on-one support from a dedicated Funding Circle Account Manager, an approval decision in a matter of hours and access to funds in as few as 48 hours.
Chief Revenue Officer, Funding Circle US
Chief Operations and Innovations Officer, DreamSpring
Funding Circle is committed to helping small businesses get the funding they need to thrive by working closely with financial institutions—including national, regional and community banks and community development financial institutions (CDFIs)—to achieve this mission, most recently launched a small business lending-as-a-service partnership with Pitney Bowes. A study published by the Philadelphia Federal Reserve this year found that Funding Circle has been able to expand credit access to underserved small business owners who are not likely to receive funding from traditional lenders, and has done so at a lower cost to borrowers. The study also noted Funding Circle’s partnerships with community institutions made it possible for those banks to reach new customers during the pandemic.
About Funding Circle:
Funding Circle (LSE: FCH) is a small and medium enterprise (“SME”) loans platform. Since launching in 2010, investors and lenders across Funding Circle's geographies - including banks, specialty finance companies, asset management companies, insurance companies, government-backed entities and funds - have provided approximately $18 billion to over c.120,000 businesses globally.
DreamSpring is a nonprofit community lender dedicated to eliminating systemic wealth inequities and accelerating the economic inclusion and strength of underserved communities. Founded in 1994, the organization, which operates in 19 states, provides rapid access to capital and customized wrap-around support to the most vulnerable small business owners, focusing on communities including people of color, women, low- to moderate-income earners, people with disabilities, and start-ups. To date, DreamSpring has issued more than 42,000 loans totaling over $465 million to small businesses that support an estimated 72,000 jobs. Learn more at DreamSpring.org.
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