Funding Circle has returned its small-business lending company (SBLC) license to the Small Business Administration following the sale of its American business unit for about $41.7 million.
The controversial London-based Funding Circle Holdings announced on Monday that it was selling its U.S. arm to iBusiness Funding, a subsidiary of the commercial real estate and business lending firm Ready Capital.
After word got out in March that Funding Circle was considering a sale of its U.S. business to offset losses (that unit lost about $29.4 million during 2023), lawmakers decried the SBA’s decision to award Funding Circle one of the SBLC licenses in the first place. Funding Circle received final approval from the SBA just two months ago.
