In an initiative to provide capital to local businesses, the Lambeth Council of London is turning towards marketplace lending to offer loans. Partnering with Funding Circle, Lambeth Council will be using its lending platform to invest and distribute loans. The program is aimed at helping stimulate local economic growth with the Lambeth neighborhood. Specifically, the Lambeth Council strives to provide financing to businesses with limited access to capital.
For Funding Circle, the partnership is expected to provide increased exposure as the Lambeth Council will be promoting the funding initiative among their seven Business Improvement Districts which include Brixton, Waterloo Quarter, Vauxhall, Streatham, Clapham, South Bank Employers Groups, and Nine Elms.
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Overall, the council stated to Finance Magnates that £100,000 in funds are being targeted for investment. Capital for the investment comes from its Treasury Management department of which is used to manage “the local authority’s cash flows, its borrowings and its investments, the management of associated risks, and the pursuit of optimum performance or return consistent with those risks.”
In its public comments, the Lambeth Council views the initiative as an innovative solution to assist the local economy. On this, Jack Hopkins, Lambeth Cabinet Member for Jobs and Growth, stated, “This is an innovative way to provide local businesses the support they need to grow and improve. We want Lambeth to be a borough where businesses can thrive, boosting the local economy and creating more jobs and opportunities for our residents. Funding Circle has been proven to work and I’m excited that we’re signing up to create more choice for business and deliver tangible benefits to Lambeth.”
Natasha Jones of Funding Circle added, “We’re very pleased to have a further London borough council sign up to our Local Business Lending programme. London businesses are some of the hardest working in the UK and deserve fast and fair access to finance to support their growth. Every business that takes a Funding Circle loan increases their headcount by approximately three people, so we believe this partnership will really help to boost the Lambeth economy.”