P2P lending gets a surprise boost

Peer-to-peer lending got a new supporter this week – government.  The UK government has committed $150 million to online P2P lenders with a further $600million in reserve.  Commercial P2P funds will be able to include around 25% of taxpayers money in any approved loans.  The scheme is designed to assist small and medium sized enterprises typically 3 or more years old.  While the amount of credit provided won’t do much to bridge the funding gap it is a major move towards diversifying alternative credit schemes available to young companies.