Lending Club Blog

Lending Club Completes $600 Million SEC Registration and Offers New Alternative for Consumer Credit

We announced back in April that we were starting a registration process with the U.S. Securities and Exchange Commission (SEC) that required us to go into a quiet period. Thank you all for your feedback and support during that period.

Today, we’re delighted to announce that we have completed this process and are now available to both borrowers and lenders. We believe that this SEC registration is a major step forward for the Lending Club community and social lending in general, as it helps establish the space as a investment alternative to the traditional debt instruments and credit products offered by large financial institutions.

What does this registration mean for you, the lenders and borrowers?

  • Under the registered offering, Lending Club lenders will now invest in notes that correspond to portions of loans made to borrower members. The notes have stated interest rates ranging from 6.69 percent to 18.63 percent, after a 1 percent service charge is applied.
  • By partnering with FOLIOfn Investments, Inc., a registered broker dealer, Lending Club becomes the first social lending network where lenders have the option of a trading platform. On the trading platform, lenders who become customers of FOLIOfn will be able to put notes up for sale in the event they need liquidity before the completed term of a note.
  • We believe this will accelerate the mainstream adoption of social lending, which will help more borrowers get funded faster.

The current financial crisis is creating mounting consumer distrust of large financial institutions and causing people to demand an alternative that gives them more control over their personal finances and investments. Lending Club is leading the charge to deliver that alternative by providing a network where lenders can fund loans posted by borrowers.

The Lending Club community has continued to show exceptionally responsible borrowing behavior over the last 18 months, demonstrated by the fact that since May 2007 the default rate has remained lower than 2 percent.

At a time when the financial landscape makes our community even more useful to both lenders and borrowers, we are thrilled to be able to accept new lenders again.

The prospectus filed with the SEC is available here.

Tuesday, October 14th, 2008 at 5:00 am

Comments (9)

  1. Jeff:

    Renaud & LC Gang, Congrats on the ending of the quiet period.
    Let out a collective scream and get back to work! Looking forward
    to some amazing opportunities for borrowers and lenders in this
    current credit environment. Best of luck and a big welcome back!

    October 14th, 2008 at 5:50 am

  2. [...] this morning, Lending Club announced that their quiet period
    has ended.  Lenders can once again make P2P loans, though the
    mechanics of the process have changed [...]

    October 14th, 2008 at 6:08 am

  3. [...] See: Lending Club completes $600 million SEC filing [...]

    October 14th, 2008 at 6:10 am

  4. Congrats! Glad you are back in the game!

    October 14th, 2008 at 7:49 am

  5. laura:

    Hello, Is FOLIOfn Investments, Inc going to play the role WebBank
    was playing for you before? Is WebBank still involve in Lending
    Club? Many thanks in advance L.

    October 14th, 2008 at 9:35 am

  6. [...] Club has opened for business again. They come back with a
    partnership from FOLIOfn. This partnership, as I understand it (and
    I [...]

    October 15th, 2008 at 7:30 am

  7. [...] as Lending Club announced that they had emerged from their
    quiet period, Prosper announced that they will be entering
    one.  [...]

    October 15th, 2008 at 8:10 am

  8. Congrats on coming back to life at this time when people need
    economic help! Rex Co-Founder and Publisher Relations, Lookery

    October 18th, 2008 at 9:18 am

  9. pastor samuel thompson:

    how do i apply for a loan

    November 10th, 2008 at 2:45 pm

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