Next Generation Small Business Credit Policy

December 11, 2019

We are excited to announce the next generation small business credit policy on our platform which allows us to power the vision of even more small business owners.

Since 2014 we’ve facilitated over $500 million in loans to thousands of small businesses across the nation. We’re forever grateful to our initial small business borrowers for trusting us to financially support their entrepreneurial dreams – and in turn we learned a lot from working with them.

We believe that small business owners in America are hardworking people who want to grow their businesses responsibly, help their community, and honor their commitments. The last three years of our portfolio performance have proven that.

Say ‘Yes’ More Often

This latest version of the credit policy incorporates lessons from facilitating loans to small businesses as well as direct input from our customers. We’re thrilled to say that with this new policy in place, some eligibility requirements have been reduced, potentially expanding access to loans to even more business owners! Minimum qualifications have been reduced from 24 months in business to 12 months in business and from $75,000 to $50,000 in annual sales. This will allow us to serve businesses even earlier in their lifecycles.

We are proud of what we do here at LendingClub and we’re thrilled to be recognized in a recent Federal Reserve study as an alternative platform that provides access to credit for people otherwise priced out or ignored by traditional bank financing. Additionally, the study demonstrates how we take a holistic view of your business and believe small business owners are more than just their credit history. Dozens of factors and multiple data sources are incorporated into the model. This helps improve the quality of credit decisioning and allows us to offer greater access to loans.

A Better Customer Experience

We’ve heard our customers’ feedback about burdensome document requirements. By incorporating an improved understanding of our customers into the new credit policy, we are now able to streamline the documentation requirements to increase the speed and ease with which businesses can get access to loans through us.

The next generation small business credit policy maximizes financial inclusion, provides better interest rates for small business owners, and harnesses learnings and innovation to empower our customers.

If you are a business owner looking for financing, we encourage you to apply – even if you’ve been declined in the past. With these changes to the credit policy used on our platform you could now be eligible for a business loan. It takes just a few minutes to get a quote, there’s no cost, and no impact to your credit score to apply.

Safe Harbor Statement

Some of the statements above are “forward-looking statements.” The words “anticipate,” “believe,” “estimate,” “expect,” “intend,” “may,” “outlook,” “plan,” “predict,” “project,” “will,” “would” and similar expressions may identify forward-looking statements, although not all forward-looking statements contain these identifying words. Actual performance of the overall platform has differed from projected performance in the past, and could differ in the future. Factors that could cause actual results to differ materially from those contemplated by these forward statements include: increases to unemployment rates, particularly if such increases are concentrated in populations with a greater propensity to take loans facilitated by our platform; changes to consumer credit behaviors; stagnation or reduction in the growth of the nation’s gross domestic product or uncertainties created by political changes associated with a change in presidential administrations, the Company’s ability to continue to attract and retain new and existing retail and institutional investors; competition; and demand for the types of loans facilitated by the Company and those factors set forth in the section titled “Risk Factors” in the Annual Report on Form 10-K, filed with the SEC. LendingClub may not actually achieve the plans, intentions or expectations disclosed in forward-looking statements, and you should not place undue reliance on forward-looking statements. Actual results or events could differ materially from the plans, intentions and expectations disclosed in forward-looking statements. LendingClub does not assume any obligation to update any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law.

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