23 August 2017
Find out more

Prosper resumes lending, again

14 July 2009  |  5611 views  |  0 Hands on keyboard

US person-to-person loan exchange Prosper says regulators have finally given it the green light to resume lending following nine months out of action.

Prosper - like rival outfits Lending Club and Loanio - was forced to close its doors to new loans last year in order to register its business with the Securities and Exchange Commission.

In April, the firm briefly opened to business again after receiving an intra-state exemption from the California Department of Corporations. This meant Californian residents and businesses could make loans, with anyone in the US able to borrow.

However, with SEC registration still not completed, it performed a U-turn less than a month later and stopped accepting loans again.

Now, in a blog post on the site, CEO Chris Larsen says: "Finally… the moment we and so many supportive and loyal Prosper community members have been waiting for… after nine long months of navigating the rapidly changing regulatory landscape, we are thrilled to announce that Prosper's registration statement with the SEC has been declared effective."

The site will continue to work as before but with the addition of a secondary market, where lenders can buy and sell Prosper loans "notes" to each other. The risk rating system has also been tightened up, with loan listings by individuals needing to meet a minimum credit score requirement of 640.

However, the planned introduction of an Open Market initiative, where vetted finance companies can post loans on Prosper and invite bids, appears to have been put on hold.

Comments: (0)

Comment on this story (membership required)

Finextra news in your inbox

For Finextra's free daily newsletter, breaking news flashes and weekly jobs board: sign up now

Related stories

P2P micro-lending site Kiva opens up to US borrowers

P2P micro-lending site Kiva opens up to US borrowers

10 June 2009  |  5284 views  |  0 comments
Prosper shuts down again

Prosper shuts down again

13 May 2009  |  5957 views  |  0 comments
Prosper resumes lending; opens market to financial institutions

Prosper resumes lending; opens market to financial institutions

28 April 2009  |  6616 views  |  0 comments
Lending Club raises $12m funding

Lending Club raises $12m funding

19 March 2009  |  5993 views  |  0 comments
Student P2P lending site Fynanz stops taking new loans

Student P2P lending site Fynanz stops taking new loans

12 January 2009  |  8029 views  |  1 comments
Prosper pays $1 million to settle securities violation

Prosper pays $1 million to settle securities violation

02 December 2008  |  6935 views  |  0 comments
Loanio stops taking new loans as SEC outlines reasons for P2P lending freeze

Loanio stops taking new loans as SEC outlines reasons for P2P lending freeze

28 November 2008  |  10267 views  |  1 comments
Prosper stops taking new loans

Prosper stops taking new loans

17 October 2008  |  6767 views  |  0 comments
P2P lender Zopa reports soaring uptake as credit crunch bites

P2P lender Zopa reports soaring uptake as credit crunch bites

09 October 2008  |  13000 views  |  0 comments
Lending Club shuts down P2P loans

Lending Club shuts down P2P loans

14 April 2008  |  9153 views  |  0 comments
Banks facing increasing competition from social networks - Gartner

Banks facing increasing competition from social networks - Gartner

06 February 2008  |  15092 views  |  0 comments
Prosper raises $20m in series c financing

Prosper raises $20m in series c financing

20 June 2007  |  6664 views  |  0 comments
Prosper signs up 100,000 members; generates $20 million in loans

Prosper signs up 100,000 members; generates $20 million in loans

01 November 2006  |  7804 views  |  0 comments

Related company news

 

Related blogs

Create a blog about this story (membership required)
visit www.niceactimize.comvisit www.worldpaymentsreport.comvisit www.vasco.com

Top topics

Most viewed Most shared
Mobile contactless spending accelerating in UKMobile contactless spending accelerating i...
12696 views comments | 27 tweets | 23 linkedin
Barclays pairs banking data with third party apps for SmartBusiness DashboardBarclays pairs banking data with third par...
11308 views comments | 22 tweets | 34 linkedin
Australia regulates digital currenciesAustralia regulates digital currencies
10448 views comments | 21 tweets | 34 linkedin
RBS to bring Silicon Valley to EdinburghRBS to bring Silicon Valley to Edinburgh
10426 views comments | 10 tweets | 8 linkedin
hands typing furiouslyWhy Is Risk Analytics Important?
10412 views 0 | 6 tweets | 1 linkedin

Featured job

Find your next job