SoFi Technologies, a digital financial services company listed on Nasdaq as SOFI with 14.7 million members, has launched SoFi Small Business Loans, a fixed-rate lending product for entrepreneurs and small business owners. The product offers loans of up to $250,000 with no application fee, no origination fee and no prepayment penalties, and the company said approved borrowers can access funds as soon as 24 hours after approval.
SoFi cited survey data and Federal Reserve findings to frame the problem the product addresses. A survey of small business owners found that 75 percent of those who applied for a business loan or line of credit in the past year said accessing affordable capital was difficult. A separate Federal Reserve finding indicated that more than half of borrowers chose online lenders for speed of decision or funding.
Anthony Noto, CEO of SoFi, described the launch as an extension of the company's existing relationship with its members: "For many of our members, their financial lives do not stop at personal goals, they also include the businesses they are building. 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."
SoFi said it has seen demand for financing across several small business categories including construction, healthcare and professional services. The product is designed for uses such as purchasing equipment, stocking inventory and hiring staff. Borrowers can check their eligibility within minutes, view their offer before accepting, and receive fixed payments intended to make financial planning more predictable.
SoFi also operates Galileo, a technology platform used by fintechs, financial institutions and brands to build and manage financial solutions across 133 million global accounts.
