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Prosper is Back! (We mean it this time)

by Chris Larsen on 07/13/09

Finally… the moment we and so many supportive and loyal Prosper community members have been waiting for…

after nine long months of navigating the rapidly changing regulatory landscape, we are thrilled to announce that Prosper’s registration statement with the SEC has been declared effective. Prosper lenders can once again invest directly in fellow Americans and small businesses!

Although this has been an excruciatingly long and frustrating process, especially considering that it has played out during the worst credit crisis in 70 years, this is a watershed moment. Prosper is the first Internet auction-based P2P loans marketplace and trading platform to have its SEC registration declared effective, which means the SEC is permitting Prosper to facilitate auctions in a way that has never been done before.

Selling securities by auction is not new and critical to greater efficiency in fair price discovery for both sides of the transaction. However, the SEC has never permitted Wall Street investment banks or any other institution to run a true auction where investors could make an irrevocable bid that committed funds prior to the establishment of a final rate. Previously all bids were revocable at any time prior to the establishment of a final price and no funds could be committed prior to this time (e.g. Google IPO). This previous requirement made competitive auctions for small consumer loans like Prosper’s virtually impossible under an SEC regulatory regime.  (Continue reading below the video…)

Trade Existing Notes
We’re also incredibly excited to introduce an Internet auction-priced trading platform for Prosper Notes. As many early Prosper lenders know, we’ve been working on this feature since we first launched in February 2006. We know that financial markets thrive on liquidity, which in P2P lending means lenders will have the opportunity to sell Prosper Notes any time regardless of the loan term. The note trading service is provided by Foliofn Investments, Inc., through their Folio Investing Note Trader platform.

Prosper Ratings
Other significant improvements include a new Prosper Rating system to make bidding easier and more rewarding. The new Prosper rating is built on Prosper’s huge database of approximately 28,000 personal loans. We have also introduced a minimum 640 credit score requirement for borrowers and a minimum bid floor for each Prosper rating to improve and optimize returns. Finally, to improve the ease of diversification, we’ve lowered the minimum bid amount to $25.

All of this translates into more opportunity for average Americans to use Prosper to fund loans directly, earn an attractive return in a new asset class, and help their fellow Americans at the same time.

Perhaps this is why the peer-to-peer lending has garnered such support from financial policy makers. For example, Federal Reserve Chairman Bernanke just said in a speech three weeks ago, “emerging technologies like peer-to-peer lending also show promise.” And California Department of Corporations Commissioner Preston DuFauchard stated in May that Prosper’s P2P lending model is a perfect example of, “the kinds of innovative ideas that can help get credit in the hands of people who need it while instilling in our financial markets desperately needed openness and transparency. We’re proud to take the lead in providing regulatory approval and oversight for Prosper.”

Let’s seize the moment!

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128 Responses

Annie | July 13th, 2009 at 8:18 pm


Dennis | July 13th, 2009 at 8:20 pm

I’m sorry, but back for whom, exactly? I’m still unable to bid on new loans (I’m in CT).

Also, I was reading the lender requirements for users in AK, PA, CA, and a few other states. I am aware that those terms are probably not under Prosper’s control, but they are absolutely ridiculous, particularly the minimum gross income/net worth terms. There are no such restrictions placed on “traditional” investments.

Meggo | July 13th, 2009 at 9:04 pm

Welcome to the game!

Vance | July 13th, 2009 at 10:00 pm

Welcome back. Why are Texas residents not able to get back in to the party? I want back in.

bob purcell | July 13th, 2009 at 10:47 pm

Having been a key proponent and change agent for reverse mortgages in America over the last two years I have seen the credit markets, and FHA walk away from perfectly solid reverse mortgages, it is good to have enterprises such as prosper as an alternative for seniors.

Andrew Hime | July 14th, 2009 at 12:31 am

Nationwide doesn’t include Texas.

Richard | July 14th, 2009 at 1:30 am

I wasn’t to sure about this program, so I invested only $180 in Sept 08, I just checked my account. I’m making about 19.50 % so far. I’m impressed. I’m only making about 3% with online savings, just a little better then the banks.

KP | July 14th, 2009 at 2:11 am

Carry on bravely, guys! It’s time credit flows down to the “little guys”…

greg | July 14th, 2009 at 2:27 am

When is Alaska going to be able to lend and borrow?
Also, is there a way to hook up Prosper to Quicken?

Arnold | July 14th, 2009 at 4:09 am

I can no longer lend on Propser as I do not qualify the financial suitability requirement. I’m so sad.

Hongqi | July 14th, 2009 at 6:21 am

Why does my account still state that Prosper is not available in Kansas?

James Hutchinson | July 14th, 2009 at 6:39 am

So, when will other states, particularly Ohio, be added?

Shawn Drewry | July 14th, 2009 at 7:21 am

Good morning Chris. Shawn Drewry here. Just found your wonderful site and blog here. Just wanted to let you know that I think you have a fantastic business mindset and that I friended you on Facebook. Look forward to networking with you momentarily. Thank you so much for approving my friend request and my blog comment. Much success and support to you my friend :-)

Shawn Drewry


Tim | July 14th, 2009 at 7:35 am

When will Florida go online?

Branflake | July 14th, 2009 at 8:20 am

I just read your prospectus. Did I read correctly? If Prosper goes bankrupt, you don’t know what will happen to the lender’s money? Is there a chance that the lenders will end up with nothing? As in $0.00?

Vincent | July 14th, 2009 at 8:52 am

…provided you live in the right state. How about some info on that, guys? I’ve stuck with this for nine months and I still can’t lend.

shirley smith | July 14th, 2009 at 9:20 am

I live in Florida and am relly upset that I cannot invest. When will we be allowed to take an active part??

Steve Winburn | July 14th, 2009 at 9:28 am

The Kentucky status; If and when will this state be back on line with prosper? Is it just a matter of time (ie paperwork etc.) or other complication?


Phred | July 14th, 2009 at 9:30 am

So if Prosper is operational again, why do I keep getting messages saying Prosper is not accepting loan bid from residents in my state (TX)? Wouldn’t the SEC filing cover the entire country?

Edward Hanson | July 14th, 2009 at 10:14 am

Not a comment, but a question:

What about all the defaulted loans that have accumulated over the last nine months?
In spite of carefully selecting loans to bid on, a significant portion of my account is now tied up in charge offs. Has any effort been directed to this problem?

Jeff | July 14th, 2009 at 10:15 am

I look forward to investing with you again. Let’s disintermediate the investing process.

Dietrick Ellsworth | July 14th, 2009 at 10:19 am

Ohio is excluded! This is OK for California. Maybe Prosper can buy their IOU’s.

I’m still stuck!

Prosper Blog | July 14th, 2009 at 11:31 am

@Dennis, @Vance, @Andrew, @greg, @Hongqi, @James Hutchinson, @Tim, @Steve Winburn, @Phred

Prosper must complete a different regulatory process for each state. We are diligently working through the process and we will alert lenders once lending is open in their state of residency.

P2P-Loans.com | July 14th, 2009 at 11:59 am

Congrats and welcome back. Now I can spend ample more time on my website and blog with the return of the “original” P2P loan site. I’ll look to participate as a lender once again when Florida clears regulatory issues.

Dennis | July 14th, 2009 at 12:00 pm

Well, that’s a little disappointing, but thanks for clearing that up.

Shirley James | July 14th, 2009 at 12:02 pm

Welcome Back!!!! This is an exciting day for you. I was disappointed to see that you will not be available in Oregon. Is this temporary? What other states or not available. I am planning to move to Washingon.

Still don’t see that you can see which payments are on route to you. I still believe that was one of your best features and was very disappointed to see that feature deleted. But, I beat on that drum before.

Once again, congratuation!
Shirley James

DK | July 14th, 2009 at 12:40 pm

Why is NJ still excluded from making loans? If there are still restrictions, why re-launch the site when not all states can participate? Prosper in not back!

Wayne | July 14th, 2009 at 12:42 pm

Did the loan fee change too? I don’t recall a 3% loan fee on my first loan. Also from Oregon, which means I can’t lend. With only a handful of states available to lend, the pool of lenders is much smaller now. Disappointing 9 month wait. I was going to borrow $10K, but not at 3% loan fee.

Arnold | July 14th, 2009 at 1:14 pm

So how many states are OK to lend?

Drew | July 14th, 2009 at 1:39 pm

Mr. Larsen, perhaps you can explain which states are currently able or unable to bid on loans. From the postings so far those unable are: CT, TX, AK, KY, OR, FL, OH, and MI. I also would like to see the feature brought back that tells you at a glance where you stand in terms of earnings on your loans. Currently, you must do the math manually to figure out if you are even earning a return! Also, it may help to improve Prosper further by adding a virtual “suggestion box” that is easily accessible on your member page once logged in. Thank you!

Jeffrey May | July 14th, 2009 at 3:38 pm

When will Texas be able to loan again?

J Gottlieb | July 14th, 2009 at 4:02 pm

This is great news! I just paid off my Prosper loan today. I’ll be waiting to be able to bid on new loans (not allowed for Ohio residents at this time).

Susan Murphy | July 14th, 2009 at 4:21 pm

Why are you not back for those of us in Florida?

Glen | July 14th, 2009 at 4:25 pm

Please provide information on the progress of each state in coming on line. I would be a shame if we have to wait for the next legislature in OR as they only meet every 2 years and just adjourned.

NewHorizon | July 14th, 2009 at 4:26 pm


OK, so back to work. :)

February 2008, Doug Fuller wrote, “For those lender’s that “opted in” and chose to participate in the legal test, accounting will be provided in a monthly supplementary statement.”

I don’t think those supplementary statements ever showed up?

Paul Jarboe | July 14th, 2009 at 9:32 pm

I am am a member of prosper and held a lender borrower status with a current loan, from prosper, very glad to see we are back in operation, but very very frustrated that I cannot participate because I live in the state of Washington. Any Idea how long I might be affected? I wrote to my State congresswoman Maria Cantwell a while back in support of Prosper efforts,She replied explaining what I already knew in regards to the process.

Charlie of NanChuck | July 14th, 2009 at 10:14 pm

Happy to see you’re back!

I am looking forward to the next “Prosper Days”

When and where will that be?

Loren Manuel | July 14th, 2009 at 10:45 pm

It does not look like we are all back from where I sit in WA state.

yessiell | July 14th, 2009 at 10:55 pm

When can I get back in the game. It says I can’t bid on a loan. When is New Jersey going to be able to bid.

john | July 14th, 2009 at 11:26 pm

Prosper’s aggregate default rate of 20% since inception is FAR above that of similar sites. Do you have an explanation for why it has been so high?

gary varvaro | July 15th, 2009 at 7:59 am


Prosper Blog | July 15th, 2009 at 11:25 am

@Dietrick Ellsworth @Phred @Steve Winburn @shirley smith @Vincent @Andrew Hime @Shirley James @DK @Jeffrey May @Susan Murphy @Loren Manuel @yessiell

Prosper must complete a different regulatory process for each state. We are diligently working through the process and we will alert lenders once lending is open in their state of residency.

Michael | July 15th, 2009 at 11:43 am

Great “Mission Accomplished” post. However, I think I count 11 states (incl. my own – TN) in the 36 comments posted in which “Prosper Is Back” doesn’t mean all that much since we can’t participate. How many states are actually online?

I have seen the response that each state has its own regulations that Prosper is working through and I understand. No need to repost. I guess I would just suggest keeping us all abreast of meaningful progress, but holding off a bit on the celebration until users can actually join in. More of a PR issue than anything.

In other news, I’d like to second Shirley James on her opinion that seeing which payments were en route was a good feature and would be welcome back (when Prosper is actually back). Thanks.

Michael | July 15th, 2009 at 12:02 pm

Since my last post, I checked the Help page and found the map of eligible and non-eligible states.

For those wondering, 36 are still non-eligible.

ex_farm_kid_17 | July 15th, 2009 at 12:33 pm

Add Iowa to the continuing list of unavailable states…..

Kelly Vielmo | July 15th, 2009 at 1:28 pm

And District of Columbia isn’t back yet…

Prosper Blog | July 15th, 2009 at 4:56 pm

@ Wayne

Yes, we have increased our fee to a flat 3% for all Borrower loans or $50.

Prosper Blog | July 15th, 2009 at 5:04 pm


We agree that we can improve the tools available to lenders to help them understand and analyze their returns and it is our intention to address this in the near future. In the past we displayed an aggregate interest earned number for each lender on their Investing page. In an effort to improve this page this number was removed in error and will be added back. Until then, you can derive this number by subtracting Principal Paid Off from Payments Received on the same page. Sorry for the inconvenience.

Prosper Blog | July 15th, 2009 at 5:06 pm

@Edward Hanson

In order to help lenders better understand the potential loss performance of loans they are funding, Prosper has developed a new rating system that leverages both credit bureau data and historical payment data for similar Prosper borrowers. In addition, Prosper does not dictate the pricing of transactions, so lenders have the ability to require a rate that compensates them for the risk they are taking. This is key advantage of Prosper’s auction based marketplace. Prosper is the only P2P marketplace to incorporate actual P2P loan performance into their rating system. The rating system and how it assigns ratings to borrows is explained in detail on http://www.prosper.com and in the prospectus available on the site. We encourage lenders to learn more. http://www.prosper.com/invest/how-to-invest/prosper-ratings/

Prosper Blog | July 15th, 2009 at 5:08 pm


Prosper is in the process of working with every state to allow lending; however each state has their own process and ultimately Prosper does not control the timeline involved to get approval. Rest assured that this is a priority for us and we will let you know as lending opens up in new states.

The current states eligible for participation by Prosper lenders can be found at: http://www.prosper.com/help/investing.aspx#states

Prosper Blog | July 15th, 2009 at 5:12 pm


Prosper’s loss rate is a function of the quality of loans that lenders have historically funded. In order to help lenders better understand the potential loss performance of loans they are funding, Prosper has developed a new rating system (http://www.prosper.com/invest/how-to-invest/prosper-ratings/) that leverages both credit bureau data and historical payment data for similar Prosper borrowers. In addition, Prosper does not dictate the pricing of transactions, so lenders have the ability to require a rate that compensates them for the risk they are taking. This is key advantage of Prosper’s auction based marketplace.

With respect to comparing to other P2P sites, it is important to remember that average loan age is a key factor to take into account. In general, a portfolio with a high proportion of young loans will have a current loss rate that is understated, especially when compared to a relatively seasoned portfolio. Another thing to keep in mind when evaluating Prosper’s loss rate is the social nature of some of Prosper’s lenders. Although the majority of Prosper’s lenders have a primary goal of earning some kind of return, there are lenders that fund loans for social reasons. Social lending is a welcome aspect of Prosper’s marketplace, although it can increase our loss rate. Prosper’s historical loss data is the foundation our Prosper Rating system and helps lenders understand the risk in a way that is not possible on sites with very little repayment experience.

Prosper Blog | July 15th, 2009 at 5:15 pm

@Charlie of NanChuck

Thank you for your interest in Prosper Days. At this time we have no plans for our next Prosper Days however we will inform our lenders if and when we decide to hold another community event.

Prosper Blog | July 15th, 2009 at 5:19 pm


Yes, the origination fee for all loans is 3%. Based on our market analysis, 3% is an extremely competitive versus traditional unsecured installment lenders. In addition, because of Prosper’s auction, borrowers can benefit from their rates being bid down, resulting in all-in borrowing costs that are significantly cheaper than the alternatives.

NewHorizon | July 15th, 2009 at 6:34 pm

“20. Will you please keep us informed about the changes Doug makes and the results that occur as a result?

I would like to update the Prosper community quarterly. To do that, I need to get back to work.”
(Posted by Prosper Shira Oct-8-2007 in an old forum thread about Doug Fuller.)

When’s the next report?

Kevin Kelly | July 15th, 2009 at 10:10 pm

I’m still disappointed that AR in one of the states that Prosper has been reinstated. I’m ready to start adding to my lending total as soon as possible. Since lenders in several states are in the same position it would be nice to have a list of those states and maybe even the estimated date.

I’m ready to start investing again to do my part in kick-starting this slow economy!

Glenn Pudick | July 15th, 2009 at 11:18 pm

Hi, as a perfect return borrower on Prosper, I feel I should be able to borrow again despite my <640 credit score.
In these times, it can be almost impossible to reach that number, even though I am current in all financial obligations.
Thank you

Jimmy | July 16th, 2009 at 12:54 pm

how come nj residents can’t bid on loans?

frederick simard | July 16th, 2009 at 4:45 pm

What about Massachusetts?

lawrence Wilsher | July 16th, 2009 at 6:17 pm

Looks like you restarted on my grandaghters birthday (07/13/09) she just turned 12.

Looks like me and my son cannot invest with you because we live in Michigan, but my grandson can because he lives and works in Mountian Valley, CA.

Is there any hope for us folks in Michigan?

Wyominggirl7 | July 16th, 2009 at 9:15 pm

Frustration is the only word that comes into my mind. PA has been sitting watching their loans default since way before the rest of Prosper went quiet…while I was once making an almost 20% return, being unable to reinvest my earned interest to make up for charge-offs (which in my opinion are not being properly persued) has now left me at a loss financially. Please address what the hold up is for PA lenders!

bmay2 | July 16th, 2009 at 9:27 pm

Welcome back!!!

Best of luck to you and the lenders and able borrowers.
You are not here in Arkansas any longer understandable as all payday loan companies were kicked out.

Daniel K | July 17th, 2009 at 4:38 am

Hi, I just got the message in the mail. I’m excited to see that Washington state has just been added to the eligible state list just days after this Prosper announcement.

I think I’ll have to make less risky investments now though, as my previous test lendings have been charged-off after just a couple months. Hopefully I can find more reliable borrowers in the future.

Lois Powell | July 17th, 2009 at 11:32 am

one of my borrowers is shown as late pay, but it is automatic pay and has NOT BEEN PROCESSSED AS FAR AS I CAN TELL

Kevin Costello | July 17th, 2009 at 12:29 pm

Virginia is not allowed back, at least yet. Why is this so?

ex_farm_kid_17 | July 17th, 2009 at 1:44 pm

It’s nice to see the count jump from 14 to 16 states in just a few days. Unfortunately, I personally wouldn’t consider 16 out of 50 as being “Back”. It’s a soft start at best.

terrymr | July 17th, 2009 at 3:55 pm

I’m disappointed to find that having made all the payments on my prior loan on time I am now excluded from borrowing on your site by your new criteria.

Pointing people to Credit Karma to check their scores is of little help as it uses a different model which results in me seeing a score that is much higher than the one used by your system.

randa | July 17th, 2009 at 7:01 pm

NC is out too, I bid on loans when I lived in MI.

Gary Bonacci | July 19th, 2009 at 8:55 am

When and/or if can we expect that tha Prosper lenders in florida will be able to bid on loans?

Marz | July 19th, 2009 at 1:33 pm

People, read before you comment. Regulation is a state power when it comes to these types of consumer loans, and as Prosper has already stated there is a different process to go through for each state. Whining isn’t going to make a slow process go any faster. If you think you have to go through red tape to get something done, imagine how much more there is for a company like this. It will take time, end of story.

Jesse | July 19th, 2009 at 2:13 pm


Jack | July 19th, 2009 at 3:30 pm

Is clearance from Idaho pending? Or refused? Or what?

Carla | July 19th, 2009 at 6:57 pm

When will we get Prosper back in WV? We want to make and receive loans too. The “big” banks won’t lend money to our small businesses. I guess it’s because we’re not on Wall Street or in the White House.

Josh | July 19th, 2009 at 7:09 pm

So, ya, what about us Texans? When are we going to be back?

John Henson | July 19th, 2009 at 8:51 pm

Is PA operational again?

Chas | July 19th, 2009 at 10:14 pm

Back for whom?

This is a joke.

Now they bar me from participating. I’m in KY.

I have a lot in stake on here….

Time to report discrimination to the SEC Police and others.

Matthew B | July 20th, 2009 at 2:26 am

This Truly bites…. i waited 9 months to find out that North Carolina is no longer allowed to bid on loans or request loans. I wish i had never become a member. See Ya !

Thomas Maher | July 20th, 2009 at 3:17 am

when will I be able to invest?

T J | July 20th, 2009 at 9:40 am


Why don’t you give a list of states where Prosper is not available instead of bragging about “come back”?
so far, CT, TX, AK, KY, OR, FL, OH, MI and MA are excluded from so called “nationwide”……. Any others?

bob purcell | July 20th, 2009 at 10:23 am

With “older Americans” being shut out of the reverse mortgage market by inadequate processes such as at MetLife, and with their need for cash at an urgent level.

40% of those 70+ have delayed retirement 5 years….I would think the Prosper marketplace could really help.

GREG | July 20th, 2009 at 11:11 am

Hi, I am a prosper lender and I wanted to make a comment about the web site. Previously we were able to see the interest being made on each loan daily, but that’s not available anymore. We could also see the payments that were coming in on a daily basis but thats gone too. Can you please let me know if these features will be returning. Thank you.

Marz | July 20th, 2009 at 11:59 am

People, instead of getting things handed to you, why not do a little foot work? It\’s not that hard to look at the help pages where there is a map that lists which states can lend and which can\’t. But lucky you, I did the work for you.


Expand the second item and ta-da!

BIlly | July 20th, 2009 at 6:23 pm

I’m in Alabama and have been a lender for a year why can’t I lend now? Its says no lending avail in my state?

Patricia Fields | July 21st, 2009 at 10:03 am

Since you have all of the new guidelines, people like me who have an existing loan that has been paid diligently but a poor credit score cannot use your service now. I liked the “old” Prosper where the lenders could decide about the risks.

I will pay my loan as promised, but cannot give the “new” Prosper a good recommendation.

Nick | July 21st, 2009 at 4:53 pm

I am in ND and it also says I cant. maybe they are not officially up……I sure hope they get it up and running. I want to start helping and making some money doing so.

Prosper Blog | July 22nd, 2009 at 11:32 am


We found that with the “payment in transit” we had a large number of complaints regarding the “false sense of progress” associated with failed payments. After much analysis and discussion, we concluded that going to cash accounting for lenders was the better approach and as such, payments will only be reported as they are released.

Ian | July 22nd, 2009 at 10:09 pm

Who can I call in KY government to nag so we can get investing again? I miss my 12%.

David | July 23rd, 2009 at 10:49 am

Looks like I am done on this site for a good long time. With all of the suitability requirements, looks like only the rich can lend on Prosper. That kind of defeats the original purpose of the site.

Prosper Blog | July 23rd, 2009 at 12:01 pm


Thank you for your continued support. We are continuing to work on getting approval in all states as quickly as possible. If you want to contact your local legislators please do so. However we do not give out the names of specific regulators by state.

Thomas Maher | July 23rd, 2009 at 11:01 pm

When are you going to get alaska approved?

praveen | July 24th, 2009 at 1:23 pm

Great Prosper is back !!

The minimum credit score requirement is 640, that is where I am unhappy it should have been 600, it would have helped me a lot, as my credit score is 600.

Wish you all the best to prosper team.

Thanks for your efforts to bringing it back on track.

Spokanemom | July 24th, 2009 at 1:56 pm

I am glad to see the site is back. The only thing I can complain about is the new rating system. My credit is the same as before but now I am considered high risk! I had a loan fully bid 2 days before the quiet period and it ended up being cancelled before the money could be transferred. I hope I can get my new listing funded. I have made all my payments on time I just want to get rid of more debt and give my intrest to real people not the banks. Wish me luck.

Brian | July 24th, 2009 at 4:42 pm

It’s about time!

Francine | July 28th, 2009 at 7:46 pm

I’m so glad you’re back! I just paid off my first Prosper loan yesterday – have another outstanding. This is one of the best things to come along for those of us without perfect credit so the banks will give us money. The great lenders on this site have helped me tremendously to reverse the sins of my past. I look forward (next year) to investing in my future – work on the home and property. Thanks Prosper – and welcome back!

Dawn | July 28th, 2009 at 11:32 pm

Why on earth would there be credit score and income limitations on lending. If we have money to lend, why can’t we lend. I could understand this if I wanted to borrow. I think your restrictions should be removed so people with low incomes and credit scores can invest. This way we can increase our income and our credit scores, all while helping someone else out.

Nick | July 29th, 2009 at 11:15 am

I just read a comment – there are now restrictions on lending, and on borrowing….So how is this different then a bank? Is that not why people liked/used prosper to begin with?


Thomas Maher | July 29th, 2009 at 12:59 pm

can I trade in alaska or oregon Thank you

Eric R Hann | July 29th, 2009 at 3:13 pm

Welcome back. I was missing this place :)

Merv | July 29th, 2009 at 7:59 pm

Do you loan to people in Maine?

Prosper Blog | July 29th, 2009 at 8:13 pm

We hope to be lending in Maine very shortly – possibly even by the end of the week.

Penny Harris | July 30th, 2009 at 6:56 am

I am very disappointed that I recieved a Prosper loan, have paid on time every time to the point that I am nearly paid off and now cannot recieve another loan because my credit score is too low. While I understand the need to make the program better, there should have been some consideration given to loyal and respectable borrowers. My credit score is improving.
Thank You

Thomas E. Anderson | July 30th, 2009 at 12:48 pm

Welcome back. Looking forward to continuing our business relationship.

Chris | August 2nd, 2009 at 1:24 am

I have asked before, and hereby ask again, for the date we were given ADVANCE NOTICE of the impending “quiet period.” Without it, I can’t imagine trusting your executive management again.

Prosper Blog | August 3rd, 2009 at 1:16 pm


in response to your comment – “I have asked before, and hereby ask again, for the date we were given ADVANCE NOTICE of the impending “quiet period.” ”

We were not allowed by regulatory rules to give prior notice or comment during the quiet period.

We apologize for the incovenience.

skubwa | August 4th, 2009 at 8:47 am

I’m in Florida and waiting to get back to lending in Propser. Can we at least get a ballpark figure about when Florida MIGHT be back? I understand you can’t commit to a date, but even a speculative guess would be welcome, and I promise not to hold you to it.


Arnold | August 12th, 2009 at 11:13 am

I received an alert that people in Alabama are not eligible to participate. What is going on with that?

Thomas Maher | August 12th, 2009 at 12:20 pm

You really are not back except in a few states.
I reside both in Alaska and Oregon..

Miss Jess | August 20th, 2009 at 8:19 pm

I am loving what I am reading about this person to person lending/borrowing I live in the Caribbean (trinidad to be exact) I wish thislending network was here – I can only hope that one day this type of lending comes to T&T as there seems to be no option for lending or borrowing across countires.
This is a fantastic avenue disappointed it is not here in the caribbean

Thomas Maher | August 20th, 2009 at 10:42 pm

Is prosper back for alaska………Thank you…

Luzy | September 16th, 2009 at 9:30 am

Prosper is not available in NJ. Been with prosper for 3 yrs. Met Chris and others in San Francisco, CA with prosper days. E-mail me back, please what can we do??

Richard Kohler | October 1st, 2009 at 3:32 pm

Don’t know why so many people are so anxious to lend money when their state is not included. It sounds like a lot of people are not getting their loaned money back from deadbeats.

Mike | October 7th, 2009 at 8:58 pm

I have moved to MD from a state that has not yet been allowed to lend on prosper. How do I change my information within prosper to my new MD address so that I can lend again?

Sheri Anderson | October 23rd, 2009 at 3:52 pm

It has been almost 4 months since I last sent a blog to find out when Iowa will be back online. When will our state be allowed to invest in the Prosper system?

JAT | October 24th, 2009 at 7:24 pm

Re: Mike | October 7th, 2009 at 8:58 pm
Unfortunately lenders from MD are not yet allowed to lend yet either.

Annette | October 31st, 2009 at 4:25 pm

TN is not able to trade again? Will it ever? Please comment on TN Order No. 09-009 SI-2009-005.



Sheri Anderson | December 18th, 2009 at 11:04 pm

It is now December, actually almost the end of the month and another year. What is the status for the remainder of the states, like IOWA. I know we can send these blogs, but it would be nice to actually get an anwer. I see there are more members on the system.

Keith | January 6th, 2010 at 9:24 pm

I am so extremely frustrated with the fact that Michigan cannot lend! Thats ridiculous! When will all states be able to lend and why can’t we do it now?

Prosper Blog | January 8th, 2010 at 6:48 pm

We are actively working securities officials in Michigan to get the state approved for our lenders. We understand your frustration and want to get approval as quickly as you do!

Mike | March 14th, 2010 at 8:42 pm

Why can’t you use the trading platform to buy notes through Folio if your from a “restricted” state, like you can on Lending Club?

John | April 21st, 2010 at 11:29 am

Prosper remains closed to Michigan lenders and unfortunately Prosper does not choose to give regular feedback as to what is happening and what is the forecasted timeline. What I thought would be a good investment vehicle and a good societal act from the standpoint of fair loan pricing has turned into an annoying failure and a relationship with a company that is largely unempathetic, unresponsive, and uncommunicative.

Erich Breuner | August 9th, 2010 at 8:09 pm

I am an Oregon resident and I have been investing in Prosper for about 9 months. Now, all of a sudden I have been blocked from investing. I meet all of the requirements posted by Prosper for being a lender from Oregon. Why have I been blocked?

John | July 26th, 2011 at 5:56 am

I put in about 600 bucks to test this out, I ended up making about 10% over 3 years, which is about the rate of a savings account. I had an A-rated loan default for the whole amount, and my lower -rated loans paid off almost completely. In all I had 3 defaults, 1 A, 1 B and 1 H – so it’s a solid “meh” for me. I’m in Mass, so I can’t invest right now. Not sure why, not that interested.

Douglas Ver Mulm | February 15th, 2012 at 11:08 pm

Hey Prosper,

What is the status with the three states you currently cannot operate within? Are you working with the securities agencies in these states? Are they ever going to come online? Please provide an update.



posted in Borrowers,Featured,Lenders,Prosper News 128 comments »

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Notice: Blogs and other materials posted on or linked from this page that use the name "Prosper" generally use that name to refer to Prosper Marketplace, Inc. if published before January 31, 2013 and to refer to Prosper Funding LLC if published on or after February 1, 2013.