British peer-to-peer lender Funding Circle Holdings PLC received approval to take part in the U.K. government's emergency loan scheme for small businesses struggling amid the coronavirus crisis.

The company is the first marketplace lending platform to receive accreditation for the U.K.'s Coronavirus Business Interruption Loans Scheme, or CBILS, state-owned British Business Bank PLC, which oversees the program, said April 17.

Under the scheme, small British businesses can borrow up to £5 million with the government guaranteeing 80% of the value of the loans. So far, loans approved under the scheme have reached more than £1.1 billion, according to banking lobby group UK Finance.

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Funding Circle said it aims to open CBILS loan applications during the week of April 20 following completion of required legal and operational setups with the British Business Bank. It added that it will pause all lending not under the scheme to focus on supporting the state's stimulus program.

The lender also received approval to take part in a similar scheme in the U.S., dubbed the Paycheck Protection Program, which is 100% backed by the government. The program offers small businesses with forgivable loans of up to $10 million to cover payroll costs, rent, mortgage interest or utilities, Funding Circle noted.

The company also said it is withdrawing its 2020 financial guidance until the macroeconomic outlook becomes clearer.