Community Investment Management (“CIM”), an impact investment firm focused on marketplace lending, announced today a Clinton Global Initiative America (CGI America) Commitment to Action to provide $300 million of responsible and transparent financing to 9,500 small businesses in the United States over the next two years.
At CGI America, CIM joined Lending Club (NYSE: LC), a marketplace that connects borrowers and investors, and Accion Venture Lab in the commitment. CIM plans to dedicate $75 million to invest in business loans through the Lending Club platform during and beyond the two-year period.
A majority of the U.S. small businesses CIM funds are owned by women, minorities or military veterans. CIM’s commitment represents the first significant impact investment in online marketplace lending, also known as peer-to-peer (P2P).
Since 1995, small businesses have created two-thirds of all new jobs in the United States, employed half of the private sector workforce, and accounted for more than 50% of non-farm gross domestic product. Yet, despite their centrality to the U.S. economy, small business owners cite access to capital as one of their top constraints to growth.
Jacob Haar, Managing Partner at CIM, stated:
“We are focused on providing responsible and transparent debt financing to U.S. small businesses who are the engine of our economy. CIM is pleased to announce our CGI America commitment, partnering with Lending Club and Accion Venture Lab to address the financing gap for small businesses, which ultimately impacts the health and sustainability of our communities.”
Lending Club CEO, Renaud Laplanche, added: