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?
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.
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