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Abstract: 

The marketplace lending industry, which uses investment capital and data-driven online platforms to lend to small businesses and consumers, has rapidly developed, growing in less than a decade to fund about $12 billion in loans, primarily to consumers. In July 2015, Treasury sought public comment on this growing industry, and ultimately received 107 responses from a wide variety of marketplace lenders, trade associations, and other organizations and individuals. This column provides highlights from numerous comments relating to small business loan markets, the nature, benefits, and potential detriments of marketplace lending, and regulatory issues.

Keywords: marketplace lenders; online lending platforms; platform lenders; peer-to-peer lending; balance sheet lenders; bank-affiliated lenders; credit access; small business loan markets

Affiliations:  1: Journal of Taxation & Regulation of Financial Institutions.