IMPACT investor Community Investment Management (CIM) has pledged to invest an extra $100m (£81.5m) into loans on the Funding Circle platform in the US.
It extends an ongoing agreement between the peer-to-peer lender and CIM, which specialises in responsibility and transparent financing, with a big focus on small firms run by women, minorities, or military veterans.
CIM was one of Funding Circle’s earliest institutional partners in the US and is also part of the Global Impact Investment Network, a body advocating investments into companies and funds with the intention to generate social and environmental impact alongside a financial return.
“Funding Circle is a leader in innovative lending to small businesses who are underserved by traditional lenders,” said Jacob Haar, managing partner at CIM. “We are pleased to expand our relationship to further empower small businesses across the United States with responsible financing.”
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Sam Hodges, US managing director of Funding Circle, said CIM shares the platform’s values and mission.
“Together, through this additional investment, we can help even more businesses access the transparent and responsible financing they need to stimulate job creation and economic growth in their local communities,” he said.
The announcement follows an £82m equity investment secured by Funding Circle in January from Baillie Gifford, DST Global, Index Ventures, Ribbit Capital, Rocket Internet, Sands Capital Ventures, Temasek and Union Square Ventures.
Since launching in 2010, investors at Funding Circle, including 60,000 individuals, financial institutions, the Funding Circle SME Income Fund and government, have lent more than $3bn to 25,000 businesses globally.