Lending Club Exits SEC Quiet Period; Resumes Loan Originations

Back in April we reported on P2P social lender LendingClub entering a "quiet period" from the SEC. In June Lending Club filed with the SEC for $600 million in notes. Today Lending Club will announce at the Finovate conference in NYC that they have completed the SEC registration process which ends its six-month quiet period. The updated Lending Club website is available again to lenders and borrowers.

Lending Club notes that the average interest rates for a person with good credit will be 12%. They are also launching LendingMatch which provides lenders with loan information to create a well diversified portfolio. Loans becomes notes registered with the SEC and Lending Club is also launching a secondary P2P loan market.

Lending Club is pushing the concept of "people lending to people" — this concept online is called social lending or social finance. To-date Lending Club has originated more than 2,000 loans with a value of over $19 million.

With the current economic situation, will more people turn to P2P lending if denied by their bank or financial institution. Something tells me that today’s announcement from Lending Club comes at the perfect time. Check out my interview with Lending Club CEO Renaud Laplanche.