Ernst, Williams Rip Biden Administration SBA Over Handling of Funding Circle SBLC License

WASHINGTON – After Funding Circle voluntarily surrendered the Small Business Lending Company (SBLC) license it wrongly received from the Biden Small Business Administration (SBA), Senate Small Business and Entrepreneurship Committee Ranking Member Joni Ernst (R-Iowa) and House Small Business Committee Chairman Roger Williams (R-Texas) released the following statement:

“As we have been saying from the moment it was announced, Funding Circle should never 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.”

Background:

Ranking Member Ernst and Chair Williams have opposed the SBA’s decision to grant Funding Circle an SBLC license since it was announced last year.

During a Senate Small Business Committee hearing in March, Ernst forced SBA Administrator Isabel Guzman to agree to reassess the due diligence procedures that led to SBA awarding an SBLC license to Funding Circle. Ernst highlighted the numerous red flags with Funding Circle, including its foreign funding.

In April, Ernst and Williams sent a letter to the SBA demanding the agency revoke Funding Circle’s SBLC license because the company had severe operating losses and were unqualified to lend taxpayer-backed loans.

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