Investment Plan: EIB lends €100 million to small businesses through Funding Circle platform

17 April 2019

●        Fresh funds will support German and Dutch small businesses  

●        EIB financing provided under Investment Plan for Europe, or Juncker Plan

 The European Investment Bank (EIB) will lend €100 million through Funding Circle, a leading global platform for small business loans. This investment, alongside a further €25 million from a leading global asset manager, will support over 2,000 small businesses in Germany and the Netherlands over the next two years[1] and provide a further injection of much-needed funding into the European small business sector. The EU bank’s loan is backed by a guarantee from the European Fund for Strategic Investments (EFSI), the heart of the Investment Plan for Europe – the Juncker Plan – under which the EIB and the European Commission are working together as strategic partners and the EIB’s financing operations are boosting the competitiveness of the European economy.

Today’s transaction builds on the successful existing partnership between Funding Circle and the EIB in the UK. Since 2016 the EIB has lent £100 million (€120 million) to UK small businesses. Online lending platforms play an increasingly important role in channelling finance directly through to small businesses, whilst also operating as an important new channel for governments and supranational entities to directly stimulate the real economy.

EIB Vice-President Ambroise Fayolle, who is responsible for operations in Germany and EFSI at the Bank, said: “SMEs are important drivers of growth, employment and innovation in Europe; they represent over 90% of businesses and employ two-thirds of the active working population. The EU bank seeks to ensure better access to finance for SMEs at all stages of development through a range of tailored instruments. It also focuses on partnerships that facilitate access to finance for SMEs in a bid to boost innovation, competitiveness and employment opportunities. Therefore I welcome very much our very close and constructive cooperation with Funding Circle.”

European Commission Vice-President Jyrki Katainen, responsible for Jobs, Growth, Investment and Competitiveness said: "Small businesses play a crucial role in the EU economy. Facilitating access to the finance they need to create jobs, innovate and grow is a key priority of the Investment Plan. Today's agreement with Funding Circle will enable 2,000 small businesses in Germany and the Netherlands to receive such a financing boost: this is another example of how the EU works to give every small businesses the means to succeed."

 Sachin Patel, Chief Capital Officer at Funding Circle, said: “Facilitating direct lending to small businesses through the Funding Circle platform is a highly efficient way for supranational banks to give small businesses access to much-needed finance. This ground-breaking investment in German and Dutch small business loans by the EIB builds on the success of our existing partnership in the UK. We are proud to continue expanding our support for German and Dutch businesses.”

Panni Morshedi, Managing Director Continental Europe at Funding Circle said: “Today’s announcement is fantastic news for German and Dutch small businesses. By making finance more accessible we can help small businesses across Europe grow and employ more people. The EIB financing will help create and sustain around 3,000 jobs in Germany and the Netherlands[2].”

Small and medium-sized enterprises (SMEs) continue to be underserved across Europe when it comes to access to finance, despite their significant contribution to the economy. Despite ongoing efforts on the EU-level, a recent survey by the European Commission found that 18% of the European SMEs did not manage to get the full bank loan they had planned for during 2018[3].

Since launching in 2010, Funding Circle has facilitated more than €7.5 billion of loans to over 60,000 businesses globally. Across Europe, 50,000 businesses have accessed about €5.5 billion in finance to date. The platform model enables institutional investors to access the SME lending asset class in an efficient and scalable way. The EIB joins a diverse group of investors lending to small businesses through Funding Circle, such as more than 85,000 retail investors, financial institutions, national and local governments such as the British Business Bank in the UK, and the German development bank KfW, as well as international organisations such as the European Investment Fund.

By linking supply directly with demand through the marketplace, Funding Circle diversifies the sources of funding available to small businesses and supports economic growth and job creation in local communities.

In Germany, Funding Circle has facilitated more than €210 million in small business loans since 2015, €100 million in 2018 alone. The platform supports small businesses from all over Germany with finance, creating and sustaining 1,700 jobs in 2017.  

In the Netherlands, Funding Circle has facilitated more than €140 million in small business loans since 2015, €81.2 million in 2018 alone. The platform supports small businesses from all over the Netherlands with finance, creating and sustaining 900 jobs in 2017.

Note to editors:

About Funding Circle

Funding Circle (LSE: FCH) is a global SME loans platform, connecting SMEs who want to borrow with investors who want to lend in the UK, US, Germany and the Netherlands. Since launching in 2010, investors across Funding Circle's geographies - including more than 85,000 retail investors, banks, asset management companies, insurance companies, government-backed entities and funds - have lent more than €7.5 billion to over 60,000 businesses globally. Funding Circle is a member of the FTSE 250 Index.

 About European Investment Bank

The European Investment Bank (EIB) is the long-term lending institution of the European Union owned by its Member States. It makes long-term finance available for sound investment in order to contribute towards EU policy goals.

About the Investment Plan for Europe

The Investment Plan for Europe, known as the Juncker Plan, is one of the European Commission’s top priorities. It focuses on boosting investment to generate jobs and growth by making smarter use of new and existing financial resources, removing obstacles to investment, and providing visibility and technical assistance to investment projects.

The European Fund for Strategic Investments (EFSI) is the main pillar of the Juncker Plan and provides first loss guarantees, enabling the EIB to invest in more projects that often come with greater risks. EFSI has already yielded tangible results. The projects and agreements approved for financing under EFSI are expected to mobilise almost EUR 393bn in investments, including EUR 33.1bn in Germany and EUR 10.6bn in the Netherlands, and support 945 000 SMEs in the 28 Member States.

More information on the results of the Investment Plan for Europe is available here.

 Press contact

Funding Circle

UK: / +44 (0) 20 3667 2245

DE: / +49 (0)152 0150 3594

NL: / +31 (0)20 708 58 35

EIB: Christof Roche,, tel.: +352 4379 89013, mobile: +32 479 65 05 88

Website: – Press Office: +352 4379 21000 –


[1] Estimate based on an average loan size of €40,000-€70,000 in Germany and The Netherlands.

[2] Estimates provided by Oxford Economics following the launch of a report called ‘Economic impact of lending through Funding Circle

[3] European Commission, SME access to Finance conditions 2018 SAFE results, November 2018.  

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