SAN FRANCISCO, April 27, 2020 /PRNewswire/ -- SoFi announced today it has helped funnel over $75 million in loan applications to lenders for the Paycheck Protection Program (PPP) established by the CARES Act, through its extensive network of lenders, through Lantern, the product comparison site operated by SoFi. Launched just 4 days after the CARES Act was passed, Lantern's PPP offering has seen 42% of applicants match with its network of lenders, of which 24% got approved by the SBA for PPP loans.
SoFi Lantern makes it easy for applicants to search across different financing options, including SBA programs, private small business financing options, and personal loans to provide applicants with a wide array of solutions all from a single application.
"In this moment in time, speed, reliability, and security are absolutely imperative when it comes to serving peoples' financial needs," said Anthony Noto, CEO of SoFi. "Through our Lantern product, SoFi has been able to arm all consumers with the information to find the financial tools they need, while keeping pace with the rapidly changing environment without any preferential treatment."
The CARES Act initially established a $350 billion fund intended for Paycheck Protection loans as a backstop for small businesses to keep employees on payroll, while lessening their economic burden during the COVID-19 pandemic. The latest relief package adds an additional $310 billion for PPP. Up to the full principal loan amount may be forgiven when used for approved purposes. There are also fewer eligibility requirements compared to other SBA programs, making newer businesses eligible for PPP loans.
SoFi Lantern works with multiple lenders to provide applicants with choice and competition in securing a PPP loan through a single application. SoFi is also working with dozens of corporate and association partners to ensure that their networks of small businesses including medical practices, local restaurants, independent contractors, and more get access to the funding they need. While the average size of the PPP loans issued by financial institutions was $206,000, the average size obtained through Lantern was $42,601, reflecting the significantly smaller businesses served by SoFi's program, as loan eligibility is tied to company size.
About Lantern Lantern is a product comparison site that makes it easy for individuals to shop for products and compare offers with top lenders. Lantern is owned and operated by SoFi Lending Corp., the digital personal finance company that has helped over one million people get their money right. Lantern is powered through a partnership with Fiona through Even Financial.
About SoFi SoFi helps people achieve financial independence to realize their ambitions. Our products for borrowing, saving, spending, investing, and protecting give our more than one million members fast access to tools to get their money right. SoFi membership comes with the key essentials for getting ahead, including career advisors and connection to a thriving community of like-minded, ambitious people. SoFi is also the naming rights partner of SoFi Stadium, future home of the Los Angeles Chargers and the Los Angeles Rams, opening in July 2020. For more information, visit SoFi.com or download our iOS and Android apps.