Able Lending, a low-cost online lender in the nation for small businesses, announced on Tuesday it secured $100 million in debt financing from Community Investment Management (“CIM”). The company announced the funds would be used to make more low-cost loans towards growing small businesses.
The Able Lending team stated that the $100 million is available to fund approximately 500 small businesses in the U.S. The company currently lends to small businesses that have been operating for at least one year and a minimum of $100,000 in revenue. Its loan terms range from $25,000 up to $1 million with rates starting at 8%.
Revealing details about the CIM investment, Able’s CEO and co-founder, Will Davis, stated:
“We are excited about CIM’s investment so that we can fund more deserving small businesses. During a time when investors’ confidence in alternative lending has plunged, this investment is a vote of confidence in our loan model and our team.”
CIM Managing Partner, Jacob Haar, also added:
“Able’s unique loan structure, where friends and family contribute a portion of the loan, allows small businesses to access more capital at lower rates. We believe Able’s tight-knit peer-to-peer model, responsible rates, and transparent approach is a big win for small businesses, and we are pleased to partner with them.”
The news of the investment comes nearly six months after Able Lending debuted its True Rate Calculator at LendIt. As previously reported, Able’s True Rate Calculator allows business owners enter details about their current loan including the loan amount, how often payments are made, and the origination fee. Able then calculates the actual Annual Percentage Rate (APR) of their current loan, as well as a comparison breakdown to show how much they could save by refinancing their debt with Able.