Prosper is working hard to gain access for investors in all states

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Prosper is working hard to gain access for investors in all states

07/20/09 posted by Prosper Blog

Although Prosper completed the federal regulatory process, Prosper must also complete a different regulatory process for each state before lenders in that state may invest though our marketplace.

We are diligently working through the process, but ultimately Prosper does not control the timeline involved to get approval. We will alert lenders once lending is open in their state of residency. 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

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17 Responses

NewHorizon | July 22nd, 2009 at 8:39 am

In addition to alerting lenders via Email when a state becomes open to Prosper lending, would it make sense to post an announcement in Prosper’s “Announcment” area in Prosper’s forums at https://connect.prosper.com/ for ALL members of the Prosper community to see?

Prosper Blog | July 22nd, 2009 at 1:26 pm

@NewHorizon

Thank you for this suggestion. We will post in the Lender forum immediately.

Alby | July 22nd, 2009 at 10:44 pm

Hurry up and get Virginia approved.

Savage | July 23rd, 2009 at 10:11 am

Wow, I’m surprised at how few states are on that map.
I guess there is a ton of bureaucratic red tape.
What ever happened to the interstate commerce clause?

jenny | July 23rd, 2009 at 2:06 pm

How do we know that the process has acutally been started in a particular state? I mean can we really believe that it’s truly an ongoing process that is constantly being worked on?

Prosper Blog | July 23rd, 2009 at 7:05 pm

@jenny

Why would we lie about this? It is in our interest to have as many Americans eligible to participate as lenders. Also, we had no part in the Kennedy assassination.

Mac | July 24th, 2009 at 5:12 pm

@ProsperBlog - Does Prosper’s lack of involvement in the Kennedy assassination explain why they have not produced monthly or quarterly updates to those involved in the NAT loans? I believe Prosper promised they would do this too.

Scott | July 25th, 2009 at 10:38 pm

Don’t be defensive, Mr. Oswald. I assume the question is more about how long the wait might be. If I am very excited to participate in your innovative process, I wonder how long I will have to wait. Should I give up and try another P2P lender, or should I wait for Prosper, which promises to be the leader in this space and the best experience. Perhaps you could post an estimated date range for approval in each state, or a “percent complete” bar for each state like you see when you download a large file.

Seacrist | July 26th, 2009 at 9:54 am

I realize Prosper does not have control over the timeline the regulatory process takes, but has an estimate been given to Prosper that can be shared with prospective lenders on the Prosper website? When I access the website, I just see that lending is not available in my state, but not sure how far along the process is or approximately how long it will take. Thanks.

John Haddow | July 26th, 2009 at 8:11 pm

All of this is news I guess but have you mentioned the default rate that Prosper now has. I had 52 loans and 7 of them will default. That is a pretty high rate and make is difficult to gain a return on your investment. Have you also advised investors that you do not allow your collection agencies to aggressively go after the money. There are many tools they can use but Prosper does not permit them to use them. They an send them a letter and ask them to pay but that is about it. Why not allow them to go to court and garnish their wages? They simply close the bank account and walk away.

Sherman Frey | July 28th, 2009 at 3:08 pm

I joined Prosper as a lender just a short time before you went into your quiet period for the SEC and anxiously waited (nine months) for the quiet period to end so that I could do some serious lending only to find out that Arizona had not been cleared for lending. I was better off before you sought SEC clearance. Now, I have not only waited for nine months but must also wait for an undetermined length of time for Arizona clearance. I’m 80 years old and I don’t know how much longer I can wait. I am in a position to help alot of borrowers out there and my bank account is earning less than one per cent.

Bryan | July 28th, 2009 at 3:34 pm

In florida and ready tp invest. keep me posted

Great stuuf

jenny | July 29th, 2009 at 1:39 pm

I don’t believe that Propser would flat out lie about things like this but with no status updates and the fact SEC filing caught a lot of people by surprise because there were no status updates, how are we supposed to know what is being worked on or not? And if I am being paranoid by not believing every party line that comes out of Prosper, than I can live with that.

dan | July 30th, 2009 at 12:29 pm

heres my concern. if you look at lending club they have like 25 states that can lend. i bet those will eventually be the states that will be able to lend through prosper also. lending club says the same thing there woking on other states to be approved. i live in maryland and its been more then a year and cant lend to lending club either. so bottom line i bet you can get an idea what states will be approved for prosper my looking at the approved states at lending club. so is this true prosper?

Mary | July 30th, 2009 at 2:51 pm

When will Virginia be approved? I am ready to be a lender and was dismayed to find out I can’t yet.

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