The North Carolina-based lending platform Loan won money by himself.
According to a recent Securities and Exchange Commission filing, the company raised $ 3 million from a group of five backers.
Based in Durham, NC, LoanWell promotes itself as “an end-to-end platform for lenders”, offering receipt, origination, underwriting, closing, maintenance and reporting in one. only place. The company says its system can be completely personalized and personalized, just like Squarespace is, and is designed with the creative and servicing needs of lenders in mind.
But LoanWell’s co-founder and CEO says the company has a bigger mission.
âToday, nearly half of black households are unbanked or underbanked, causing a huge financial inclusion divide,â Bernard Worthy wrote in a blog post in March. âClosing this gap is imperative, as it would improve economic opportunities and outcomes, especially for communities of color. “
Read more: Rethinking SME capital flow in underserved financial deserts
PYMNTS explored this question earlier this year in a conversation with Robert Villarreal, executive vice president of CDC Small Business Finance and president of the Small Business Finance Fund (Bankers Small Business CDC of California).
He explained why many strategies to tackle underfunded small businesses have failed, and while only a complete overhaul of capital markets can make things fairer for borrowers of minority businesses.
âYou hear a lot about food desserts,â Villarreal said. âNot only are there food deserts, but there are financial deserts, which means that there is no bank or financial institution in these communities. And if there is a “financial institution”, it is a payday lender. It is not a responsible lender.
Even the Small Business Administration, arguably the largest government agency tasked with connecting small business owners with capital, isn’t always helpful, as it operates through the banks and financial institutions mentioned by Villarreal.
Worthy said LoanWell has already raised more than $ 1 million to improve access to funds for thousands of small businesses, securing more than $ 100 million in loans in 2020 alone. The company said it was also helping businesses stay funded during the pandemic through North Carolina’s Quick Payback Loan program.