Newity, a company created to purchase and service Paycheck Protection Program loans, always knew it would have to pivot its business model once PPP activity began winding down.
It’s now launching a nationwide small-dollar Small Business Administration 7(a) business. The company began building an online-lending platform in May — the same month PPP lending ceased — and recently launched a pilot that provided small-dollar 7(a) loans to about 80 borrowers. On Thursday, Newity unveiled its 7(a) lending portal to the broader marketplace.
“We think if we can prove that we can turn loans around in two weeks or less … that will be very powerful,” said Luke LaHaie, co-founder and co-CEO of Newity.
Newity’s pivot has the potential to put the Chicago-based firm, known formerly as ACAP SME, in direct competition with the SBA itself. The Biden administration’s 2020 budget plan includes funding that would permit the SBA to originate…
