Representative Williams & Senator Ernst are “Pleased” but “Remain Concerned” After Funding Circle’s Announcement
June 26, 2024
Delaney Sexton
Contributing Editor
Representative Williams & Senator Ernst are “Pleased” but “Remain Concerned” After Funding Circle’s Announcement
Representative Roger Williams and Senator Joni Ernst released a joint statement since the announcement that Funding Circle is voluntarily returning its SBLC license:
“As we have been saying from the moment it was announced, Funding Circle never should have received an SBLC license from the SBA. We are pleased to see this license returned to the SBA but remain concerned on how a company with such a weak financial position was granted a license in the first place. We will continue to monitor any participation from Funding Circle in SBA lending and the 7(a)-loan program due to this administration’s risky underwriting changes that could put taxpayers on the hook for unprecedented losses.”
After SBA decided to lift the 40-year moratorium, they added three additional SBLC licenses, allowing new lenders to participate in the 7(a) program. Funding Circle was a recipient of one of the coveted SBLC licenses. Four months later, Funding Circle’s CEO stated they were looking to sell their U.S. operations. Soon after this announcement, SBA Administrator Guzman was questioned on the matter during a Senate Small Business Committee hearing. She stated that SBA and Funding Circle were working closely together, and Funding Circle eventually received final approval to make loans.
At the end of April, Representative Williams and Senator Ernst sent a letter to Administrator Guzman. The letter requested that SBA immediately revoke the SBLC license and provide any documentation regarding Funding Circle and the SBLC license.
It was just announced that iBusiness Funding is acquiring Funding Circle, and the SBLC license is going back to SBA.
“While the Committees are thankful that Funding Circle turned over their license, this should undoubtedly never have happened in the first place,” reads the press release.