Funding Circle and ApplePie Capital make it easier for wealthy to finance small business

San Francisco marketplace lenders Funding Circle and ApplePie Capital are taking steps to make it easier for wealthy individuals to lend to small businesses.

Funding Circle said Tuesday that it created a fractional loan market so accredited investors could more easily diversify their investment in small business loans made through the marketplace lender's platform.

The loan diversification is critical for a wealthy individual who may want to invest $50,000 in loans made through Funding Circle, which makes small business loans from $25,000 to $500,000 for 1- to 5-year terms at rates ranging from 5.99 percent to 20.99 percent. Funding Circle charges an origination fee of 2.99 percent.