Osborne Clarke has advised long-standing client Funding Circle on its successful application for a £20m share of a £55m government initiative intended to stimulate small business lending in the UK.

The government's decision to invest directly in peer-to-peer lenders (though its business finance partnership scheme) is part of its flagship credit-easing policy.

Osborne Clarke partner Omar Al-Nuaimi and consultant Stephen Black guided Funding Circle through the legal issues around the deal, including key areas like state aid, as well as helping with vital documentation.

Omar Al-Nuaimi said:

"Funding Circle have seen tremendous lending growth since they started, but getting this £20m through the platform to further support small businesses in one hit is a real strategic boost.

"We've been advising Funding Circle since they were a start-up and one of our key criteria has been to help them develop their business in a way that is compliant but doesn't defeat the simplicity and attractiveness of their product. This is especially important in an innovative area like peer-to-peer funding, where much of the relevant law and regulation has been developed for more traditional lending models.

"Judging by the strength of the endorsement of Funding Circle, we think that objective has been well and truly met."

http://www.osborneclarke.co.uk/media/services/banking-and-finance/2013/…