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Prime Meridian launches small business lending fund for investing in P2P small business loans

Prime Meridian Capital Management has launched the Prime Meridian Small Business Lending Fund, giving investors the opportunity to invest in the growing sector of P2P small business lending.

Prime Meridian’s Income Fund was one of the first P2P lending funds in the US, with over 29 consecutive months of profitable returns without a single drawdown, and has a well-established track record. Prime Meridian has expanded its offerings by moving into the small business P2P lending space.
 
P2P lending is the practice of lending money to unrelated individuals (i.e. peers) without going through traditional financial institutions such as banks or funding mechanisms such as venture capital or investors. There are four major categories of P2P lending: consumer credit, small business, student loans, and real estate.
 
The Prime Meridian Small Business Lending fund was established specifically for targeted investments in small business P2P lending. Its flagship fund, Prime Meridian Income Fund, covers consumer credit P2P lending.
 
“Banks aren’t really interested in making smaller loans of less than USD500,000 to small businesses. As a result, most small businesses are looking for alternative methods of borrowing capital to fund future growth,” says Don Davis, managing partner of Prime Meridian. “As witnessed by the fast growth of P2P lending overall, I believe the small business lending category is the next big area for growth in P2P lending. We developed the Prime Meridian Small Business Lending Fund specifically to invest in collateralised small business loans backed by prime and super prime personal guarantees, which we believe carries much lower risk than other segments of the market.”

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