Two Suffolk councils have launched a partnership with Funding Circle, investing £1million each to boost funding for local businesses, hoping to use returns to protect public services.
Babergh and Mid Suffolk Councils will begin lending this week through Funding Circle, the UK’s leading online marketplace for business loans.
The two councils are planning to lend in tranches of around £100k each, with about half of each funding round going to help businesses across Essex, Norfolk and Suffolk.
Babergh and Mid Suffolk join 16 other local authorities who already lend through the platform.
The councils have said the investment through Funding Circle, which is the largest single amount from any district or borough council in the country, reflects their determination to protect services through new ways of raising money.
Babergh leader Jennie Jenkins said: “This allows us to operate in a responsible and prudent manner, while seeking high returns which can be used to protect and improve public services.”