Prosper Lending Review

October 20, 2009 - Amid historic regulatory reforms being considered through the new administration and lawmakers on Capitol Hill, the Coalition for New Credit Models announced its formal launch today becasue it is representatives descended upon Washington. The Coalition consists of non-profit, for-profit, and social enterprises using technologies, products and business models to offer credit and data to countless consumers and smaller than average midsized businesses. These models be innovative options to existing banking and banking institutions and are backed by venture and social capital to stimulate the economy, shore up real estate markets, and enhance local communities.



They employ a special concentrate on bringing transparency, fairness, durability, and accountability to consumers also to our credit markets. Chris Larsen, Chief Executive Officer and Co-founder of Prosper, America’s largest peer-to-peer lending marketplace, said, “This country has been doing an energy crisis for many years and we have reached a financial crisis. America’s economic future will depend on new and alternative credit models being embraced in a similar manner green technologies are being nurtured by policy leaders that can help solve the vitality crisis.



The current regulatory environment has stifled small business owners in this nascent industry, and it's also clearly time for brand spanking new policies and fresh thinking from lawmakers and regulators. Nicolas Perkin, President of The Receivables Exchange, said, “Now more than ever before, America’s businesses really should have unfettered use of alternative and reliable causes of capital to meet up with their business financing needs.

1. Adopt legislation classifying person-to-person lending like a consumer banking service, not only a securities offering. 2. Create a liquidity fund to produce capital for companies making small consumer loans to underbanked individuals. 3. Establish a federal backstop for smaller than average and mid-sized businesses to deliver access to working capital through electronic marketplaces.