Online P2P lender Lending Loop has partnered with the Ontario government to launch a pilot project that will provide $3M in loans over the next two years, according to the Globe and Mail. The article indicated that the Ontario government will boost Toronto-based Lending Loop’s loans by 10 percent, helping fund more than $30M of loans to Ontario businesses. The government will receive a full re-payment of the loan plus interest at the end of the loan terms.
“The new lending commitment from the province recognizes the contribution that non-traditional channels can play in improving businesses’ access to capital,” Lending Loop Co-Founder and CEO Cato Pastoll told the Globe and Mail. “This partnership is a major step forward for peer-to-peer lending in Canada. Globally, over $40-billion has been lent to businesses through the peer-to-peer model, and we are incredibly excited to see the Ontario government involved in helping support the growth of businesses across the province.”.@LendingLoop CEO Cato Pastoll Comments on Partnership with Government of Ontario to make financing more accessible and affordable for SMEs @Cato_P4 #p2plendingClick To Tweet
According to the article, “The three-year “access to capital” pilot program also includes a commitment to provide a grant of up to $750,000 to the Toronto Financial Services Alliance to promote awareness of alternative forms and sources of lending programs available to small businesses. In addition, a second grant of $1.75-million was announced to support the adoption of fintech technology by credit unions to increase the loans being made to small businesses.”
“Peer-to-peer lending platforms play an important role because they increase the amount of capital for small businesses by creating new sources of loan capital, more sophisticated credit models, and efficient access,” a Ontario government spokesperson told the Globe and Mail. “Platforms in other markets have proven that lending to small businesses with affordable, long-term capital not only benefits the small businesses but is also a highly attractive investment for investors.”Better Together: @LendingLoop Partners with Government of Ontario to make financing more accessible and affordable for SMEs @Cato_P4 #p2plendingClick To Tweet
As Canada’s first fully regulated P2P lending platform focused on small business, Lending Loop aims to connect all investor types with small businesses looking for affordable financing, allowing small businesses to apply online for business loans up to $500,000.
NCFA Canada, Online Ecosystems & Financing Marketplaces CEO Craig Asano added his congratulations on LinkedIn:
“Congrats to the entire team at @LendingLoop! and special kudos to co-founders Cato Pastoll and Brandon Vlaar for #NotGivingUp and staying true to your core values. Helping small businesses gain access to online loan capital while providing diversification and #marketplacelending opportunities for a network of investors. For anyone wanting to start-up a business you’ll inevitably encounter many contrarian perspectives and hurdles that can feel insurmountable at times. From navigating business models, seed funding and regulations to educating the market on the potential benefits of new ways of thinking. It can take years to make it work. To build a product that you, your co-founder, your team, your investors, partners and community can be proud of whilst living the startup grind. When you need some inspiration, look to the LendingLoop story… Follow your dreams and don’t give up.”