Funding Circle stops all UK lending not linked to government support scheme

LONDON (Reuters) - Peer-to-peer lender Funding Circle said on Friday it has joined the British government’s Coronavirus Business Interruption Loans Scheme, and is to stop all UK lending not linked to that programme.

Joining the scheme means Funding Circle’s loans to small businesses will come with an 80% government guarantee.

The company’s shares had more than halved since the start of the year, but have rallied around 70% since Wednesday after it said it was joining the U.S. government’s small business stimulus programme.

Funding Circle, which matches borrowers with retail and institutional investors, also said it was withdrawing its financial guidance for the rest of the year until the outlook became clearer.

Reporting by Rachel Armstrong