Funding Circle’s SBLC License Should be Revoked Says House Small Biz Chair & Senate Small Biz Ranking Member

April 25, 2024

Delaney Sexton
Contributing Editor

Chairman Williams & Senator Ernst Ask SBA to Revoke Funding Circle SBLC

Yesterday, Chairman Williams and Ranking Member Ernst sent a letter to SBA Administrator Guzman addressing Funding Circle’s SBLC license. Concerns were raised after Funding Circle’s CEO mentioned possibly offloading the US arm of its operations. Since then, Funding Circle received final approval to make loans under the 7(a) program. Representatives have expressed discontent with this decision, and this letter solidifies their stance against Funding Circle.

The Representatives write in the letter, “To that end, we request that the SBA provide a briefing to the Committees of jurisdiction in both the House and Senate, and for the SBA to immediately revoke Funding Circle’s SBLC license.”

The two Representatives made the following statements about the letter to the SBA Administrator:

“The SBA’s decision to award Funding Circle an SBLC license represents yet another failure that cannot be ignored,” says Chairman Williams. “The moment the company’s own CEO publicly questioned the viability of their U.S. operations should have been enough of a red flag to stop the SBA’s licensing process from moving forward. Unfortunately, the SBA ignored these warnings, and if Funding Circle continues to offer loans to businesses that cannot pay them back, the American taxpayers will be left paying the bill.”  

“SBA’s recklessness with taxpayer dollars is unmatched,” says Senator Ernst. “SBA failed to do proper due diligence on Funding Circle, and Americans are paying the price. It’s past time for the SBA to rein in its misguided lending rules and revoke Funding Circle’s license.”

Sources:
House Committee Press Release
Letter to Administrator Guzman