8th Jul 2020 11:18
(Alliance News) - Funding Circle Holdings PLC on Wednesday reported a "record" month of June amid the UK's Coronavirus Business Interruption Loans Scheme and said that it will cut about 85 roles in the US.
Shares in the company were 10% higher at 77.20 pence each in London on Wednesday morning.
Funding Circle was accredited to the CBILS at the end of April, and began partaking in the programme in May.
Chief Executive Officer Samir Desai said: "Following our accreditation to CBILS, our UK business has reached its highest ever levels of origination and has represented 16% of approved CBILS loans since we joined the programme. Similarly, in the US we have helped protect thousands of jobs at small businesses through PPP loans."
The small and medium-sized business lender said it has approved about GBP460 million of applications under the CBILS programme and originated about GBP300 million as at June 30.
"June was a record month for originations, up approximately 30% year-on-year," Funding Circle added.
"Funding Circle has represented approximately 16% share of the number of loans approved since we began participating in CBILS."
In the US, Funding Circle was accredited to offer Paycheck Protection Program loans on April 15.
Since then, it has approved about USD800 million in PPP loans, originating about USD300 million.
Funding Circle added that it is looking to "accelerate the business's path to profitability".
"This includes centralising our US technology team in the UK, moving our sales and marketing teams to our Denver office and workforce reductions," Funding Circle said.
Funding Circle said there will be a net reduction of about 85 roles in the US business.
By Eric Cunha; [email protected]
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