SAN FRANCISCO — SoFi Technologies has launched a new small business lending program offering loans of up to $250,000 as the digital financial services company expands beyond consumer banking to serve entrepreneurs, according to a statement from the company.
The new product, SoFi Small Business Loans, is designed to provide business owners with faster access to financing through the company’s digital platform, which already offers consumer banking, lending and investing services.
According to SoFi, many small business owners continue to face challenges obtaining affordable financing, often relying on credit cards, waiting for traditional bank loan decisions or turning to alternative lenders that may charge higher rates or fees.
What Survey Found
The company said that in a recent survey of small business owners, 75% of respondents who applied for a business loan or line of credit during the past year said it was difficult to obtain affordable capital. SoFi also cited data from the Federal Reserve showing that more than half of small business borrowers chose online lenders because of faster lending decisions or funding.
“For many of our members, their financial lives do not stop at personal goals, they also include the businesses they are building,” CEO Anthony Noto said in the statement. “With SoFi Small Business Loans, we are expanding our ability to serve members in more of the moments that matter, giving them access to business financing through the same digital-first platform they already use to manage their personal finances.”
According to the company, the new lending program is intended to serve businesses in sectors including construction, healthcare and professional services.
What the Loans Include
SoFi said the loans include:
- Fixed-rate financing of up to $250,000 that can be used to purchase equipment, build inventory or hire employees.
- An online eligibility check that can be completed within minutes, with funding available as soon as 24 hours after approval for qualified borrowers.
- No application fees, origination fees or prepayment penalties.
- Fixed payments designed to help business owners better manage expenses and plan for future growth.
The company said it plans to introduce additional products and services aimed at entrepreneurs as it expands its small business offerings.
