Toronto-based Lending Loop, a platform connecting small businesses in need of financing with Canadian investors, is open for business after completing its registration with the Ontario Securities Commission and additional regulators. It is available in every Canadian province except Quebec.
Founders Cato Pastoll and Brandon Vlaar launched Lending Loop in late 2015. The registration process to become an exempt market dealer began this March.
“While peer-to-peer lending has been highly successful across the globe, we had to navigate some unique regulatory challenges in order to bring this business model to Canada,” Mr. Pastoll said. “It can be challenging for new entrants and regulators to adapt novel business models to existing regulations, and we’re extremely proud to be pushing this industry forward.
“We’re bringing a new form of finance to Canada that makes capital more accessible for small businesses while offering a brand new asset class to all Canadians.”