Ontario Government Launches $3 Million Pilot Project with Lending Loop for Small Business Loans
May 2, 2018 / Source: BetaKit
The two-year pilot project will see the government providing 10 percent of each Lending Loop loan, meaning that over the duration of the project, it will help fund over $30 million in loans to Ontario businesses.
“This partnership is a major step forward for peer-to-peer lending in Canada,” said Cato Pastoll, co-founder and CEO of Lending Loop. “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.”
The Toronto-based lending marketplace allows Canadians to invest their money in small business loans, giving businesses access debt financing.
This announcement comes just over two years after Lending Loop halted new loan requests after the Ontario Securities Commission stepped in with concerns that the startup wasn’t adhering to Ontario Securities Act guidelines. By October 2016, Lending Loop completed registration with the OSC as an exempt market dealer.
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