Funding Circle, the leading online platform for small business loans, announced today that it is now operational in Nevada, allowing it to provide the state’s more than 280,000 small businesses with much-needed access to capital. With operations live in Nevada, Funding Circle now offers loans to businesses in all 50 states and Washington, D.C.
In Nevada, securing capital funding has historically been very difficult for small businesses. According to the Nevada Small Business Development Center’s (SBDC) 2022 Small Business Challenges Survey, securing financing is one of the largest obstacles facing small businesses in Nevada. Nearly 60% of survey respondents reported that securing debt and capital to finance their business was a challenge.
“Securing funding has been especially challenging for small business owners throughout Nevada, who continue to navigate post-Covid challenges and economic uncertainty,” said Ryan Metcalf, Head of Public Policy and Social Impact at Funding Circle US. “With Funding Circle now offering small business financing in Nevada, business owners in the state have newfound access to quicker, lower cost capital from a responsible, state licensed, and regulated lender that will allow them to grow and scale their businesses and create jobs in the state.”
“This is a win-win for both residents and small business owners. Businesses will have greater access to capital than ever before, and residents will get to have a say about what happens in their neighborhoods,” said Nevada State Sen. Pat Spearman (D-1), a sponsor of NV SB161, the legislation that has made it possible for online lenders to offer to fund to businesses in the state.
The announcement follows the release of research conducted by the Bank for International Settlements (BIS) and the Federal Reserve Bank of Philadelphia that analyzed proprietary loan-level data from two fintech small business lending platforms, one of which was Funding Circle. The study found that Funding Circle is increasing access to capital at a lower cost for borrowers who are less likely to receive credit from traditional banks and predicting future loan performance more accurately than the conventional method to credit scoring, leading to better loan performance.