Weekly Online Lending Snapshot – February 10, 2017
A new organization called the Online Lending Policy Institute (OLPI) joined the growing roster of online lending-related industry groups to launch recently. In a press release announcing their formation, they list members including Cross River Bank and RocketLoans. Also this week, Breakout Capital, a non-bank small business lender, announced that Drift Capital Partners would be providing them a revolving credit facility to make working capital available to their small business customers. While it was officially launched last year, the Philadelphia Department of Commerce’s 29 member Capital Consortium appears to be up and running now. An article published on Thursday discusses the first handful of small businesses to close a loan through the consortium successfully. It’s an interesting example of how lenders across the spectrum—from banks and credit unions to online lenders like Credibility Capital—might partner with governments to help the small businesses within their communities get the credit they need. And, in yet another example of traditional lenders collaborating with online lenders, on Wednesday, Promontory Interfinancial Network—a firm that provides financial institutions with solutions to better manage liquidity and balance sheets—announced a new program to enable community banks to purchase super-prime student loans originated by SoFi.
Note that this report is updated as of Thursday’s market close to ensure we can get it to you before the weekend. Please contact us with any feedback or suggestions you may have for future snapshots.
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