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Congratulations to Facebook on the start of something completely new! We are extremely happy to be the first financial service to launch on a leading social network!! And, we congratulate all of the application developers for creating something truly unique.

Well, a new company was born today thanks to Facebook. We are excited that more than 400 Facebook members installed our application and we look forward to what the future will bring.

We had a few technical glitches, but we are really proud that all of our employees were able to contribute and make this happen. We will strive to improve every day and appreciate your support.

Better rates. Together.

John from Lending Club

The Lending Club team is committed to providing a safe, easy and private financial service to the Facebook community.

We are totally open to your suggestions and recognize that the only way we are going to be successful is by listening and responding to the community.

Out site is back up! Better rates. Together.

John from Lending Club

We want to thank you for the fantastic response to our new company.

Due to the overwhelming response, we are currently down.

Please continue adding the application to your Facebook profile, and we shall return shortly.

Person-to-person lending application becomes first collaborative financial service to launch on a leading social network.

SAN FRANCISCO – Facebook f8 Event, May 24, 2007 – Lending Club announced today the launch of its collaborative, person-to-person lending service on the Facebook Platform. The service helps Facebook users borrow and lend money directly among each other, bypass the banks, and get better rates. By working together, Facebook users can borrow money more easily and at a better rate than they would get from a bank, or invest in loans at higher rates than those served by savings or money market accounts.

"Person-to-person lending helps both lenders and borrowers get better rates," said Renaud Laplanche, Founder and CEO of Lending Club. "Banks support an expensive branch network and incur high costs to collect deposits from the public on one side and extend loans on the other side; Lending Club provides a shortcut."

Using Lending Club, individual borrowers can apply for personal loans of $1,000 to $25,000 that get funded by one or more individual lenders. Lending Club handles user authentication, bank account verification, credit checking, credit reporting, funds transfers and collections.

Lending Club's proprietary technology called LendingMatch™ helps lenders identify loans based on pre-set criteria such as being Facebook friends, or being in the same network, group or geography. LendingMatch™ then presents lenders with a diversified loan portfolio (composed of ten to thirty borrowers) reflecting these relationships as well as the lenders' individual risk preferences.

"Person-to-person lending will gain broad adoption faster in an environment where people feel connected to each other," said Laplanche. "Facebook is the perfect launch platform, with 24 million active users who communicate and share information through the social graph, or the network of connections and relationships between people."

Facebook is the sixth-most trafficked website in the United States. More than 50 percent of Facebook users return to the site each day.

"Facebook Platform creates an ecosystem for developers to build applications that deeply integrate into Facebook and use its social graph," said Mark Zuckerberg, Founder and CEO of Facebook. "By enabling developers to make applications within Facebook, we're working together to create a better utility for millions of people."

In addition to helping borrowers get better rates, Lending Club offers a more responsible method of borrowing. Instead of giving unsuspecting borrowers a revolving credit line with variable rates, Lending Club offers stability by facilitating fixed rate installment loans with no hidden charges or fees.

In an effort to protect its community and encourage responsible borrowing, Lending Club is available only to borrowers with credit scores at or above 640. Although Lending Club is exploring offerings for borrowers with lower credit scores, the company does not participate in sub-prime lending.

Lending Club generates revenue by collecting a one-time processing fee of 0.75% to 2% of the loan amount from borrowers and a processing fee of 1% of the installment amounts from lenders.

About Lending Club™

LendingClub.com is an online social lending network where people can borrow and lend money among themselves based upon their affinities and/or social connections. Across all 50 states, members can borrow money at a better interest rate than they would get from a bank or credit card and invest in a diversified portfolio of loans with higher rates of return than those served by savings accounts, CDs or other online lending services. LendingMatch™ technology helps match lenders and borrowers by using connections established through social networks, associations and online communities, and build diversified portfolios based on lender preferences. Lending Club is headquartered in Sunnyvale, CA. More information is available at www.lendingclub.com.

Press Contact:
Paula Cavagnaro
Antenna Group
415-977-1915
paula@antennagroup.com

Live!

Welcome to the Lending Club blog. We are very excited today to be part of this fantastic new Facebook platform and service launch. We believe it to be a grand opportunity for our young company and for Facebook members. Facebook is one of the fastest growing social networks today, with 24 million active users and more joining every minute.

We started Lending Club with the idea that trusted social networks and affinity groups were a great place to deliver a person-to-person lending and borrowing service. In selecting our first partner, we looked hard for a social network that its members trusted to deliver more than just a good time. Validation and trust are critical to us. Facebook provides that level of relationship and validation in a way few social networks do. When you are dealing with money, either as a borrower or lender, you need a sense of camaraderie that goes beyond drinking buddies.

Lending Club is creating a direct person-to-person shortcut in borrowing and lending, bypassing the traditional role of the banks. Banks usually collect deposit on one side and extend loans on the other side; we provide a shortcut, a way to directly match lenders with borrowers. Starting today, we are offering a way for Facebook users to take personal loans of $1,000 to $25,000 funded by other Facebook users. Members who have the financial capacity are now able to extend loans to a portfolio of other members they choose from their network, neighborhood, and alumni. Loans carry a lower interest rate than bank loans but higher than a savings account, so both lenders and borrowers get a good deal.

Person-to-person lending delivers great value to both lenders and borrowers, but can also present risks to the lenders. Making the service available to trusted social networks and other affinity groups reduces the risks by leveraging existing groups, connections and relationships among people, and make sure we all help each other.