SoFi Originates $27 Million in Small Business Loans in Inaugural Quarter

SoFi has officially entered the small business lending market, originating $27 million in loans during its first quarter of internal operations. While the company views this as a 'startup' phase, it marks a significant shift for a lender traditionally focused on personal loans and student debt. For retailers and service providers, this means a major new player is entering the space to provide working capital and business growth funding. SoFi is leveraging its massive existing member base to cross-sell these business products. If you already use SoFi for personal banking or have employees who do, you may see integrated offers for business expansion loans. The company plans to scale this slowly to ensure credit quality, but the entry of a tech-heavy lender like SoFi usually leads to faster approval times and better digital interfaces for borrowers. This move suggests that competition for small business lending is heating up. As SoFi expands, other traditional banks may be forced to improve their own business loan terms or technology to keep up. For operators, this provides another potential source of liquidity to fund inventory, equipment, or marketing without relying solely on traditional local banks.

Source: deBanked

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