The European Investment Bank (EIB) has committed £100m to supporting small businesses across the UK as part of a new partnership with online lending platform Funding Circle.

The EIB's injection, along with £25m from the Funding Circle SME Income Fund, will enable £200m worth of new loans to be awarded to growing companies over the next seven years.

Jonathan Taylor, vice president of EIB, said: "Investment by small businesses drives economic growth, and simple, efficient access to finance is essential to help small companies to expand, create jobs and harness new opportunities.

"This new and exciting partnership with Funding Circle demonstrates the European Investment Bank’s firm commitment to seeking out new ways to stimulate business investment across Europe.

"The £100m backing will not only unlock over £200m of new investment by small businesses across the UK, but also provides an innovative model for supporting SMEs that could be used elsewhere in Europe."

Samir Desai, chief executive and co-founder of Funding Circle, added: "Our partnership with the European Investment Bank is the first of its kind and represents another important step on our journey to creating a global marketplace where creditworthy businesses borrow from a diverse range of investors.

"This significant investment will ensure more businesses access the finance they need to grow and will help support economic growth and job creation across the UK."

Funding Circle launched in 2010 and has since facilitated loans worth more than £1.25bn to 16,000 businesses.

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