Credit: Shutterstock photoA new alliance between LendingClub CorporationLC and Opportunity Fund was announced by former President Bill Clinton at the Clinton Global Initiative (CGI America). While LendingClub is the world's leading online financial community connecting borrowers and investors, Opportunity Fund is California's leading microfinance provider.
Partnership Details
Under the joint effort of LendingClub and Opportunity Fund, the primary aim is to provide access to around $10 million of capital to small businesses in California. These loans to small entrepreneurs will help build up nearly 400 businesses, which in turn will generate over 1,000 jobs.
The partnership, which was established as part of the Community Investment Working Group, is all about boosting employment creation, driving economic mobility and building stronger communities.
LendingClub's technology platform will be used to screen borrowers that meet Opportunity Fund's particular credit criteria and loans will be provided to the eligible applicants. In short, small business owners including minority communities and women entrepreneurs will be granted Opportunity Fund's affordable credit along with expert counsel.
For Opportunity Fund, this partnership will further extend its reach to underserved businesses to which it has been lending for 20 years. The technology provided by LendingClub will assist it to operate on a larger scale and fulfill the requirements of small businesses at a faster pace, thereby, boosting growth.
Our Take
As of Mar 31, 2015, more than $9.3 billion in loans have been made through the LendingClub platform, whereas Opportunity Fund has deployed over $100 million to more than 8,000 people since 1994. The partnership will help revive the weakened bank lending after the 2008 financial crisis to small businesses.
Currently, LendingClub holds a Zacks Rank #2 (Buy). Some other stocks with the same rank in this space include Healthstream Inc. HSTM , Limelight Networks, Inc. LLNW and Autohome Inc. ATHM .
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
