According to the report that stated the status of cash loans, it has been increasing dramatically throughout the year. Statistics from Wall Street Journal stated that in 2005, there were $118 million of outstanding peer-to-peer loans. In 2006, there were $269 million, and, in 2007, a total of $647 million. The projected amount for 2010 is $5.8 billion. This show that most people across the country has turning more into cash advance payday loans or any cash loans in regards with their emergency on money.
The Federal Reserve Bank of San Francisco recently noticed these growing things with the cash loan business. They gathered a meeting to discuss this innovating process for the success and development of their business. The meeting held last 2008 with all community leaders, investors and the largest peer-to-peer lending program came too talked about the cash and its implication to their economy. With all the attendee set an agreement that these following cash loan lenders act the very important role to the success. However the community development finance industry should also be aware to this new way of business strategies that will make the profit get to the next level.
However, the SEC acknowledged that peer-to-peer lending was by definition, activities creating securities. The lending companies must be licensed and registered so they will not abide the rules and regulations of the Securities Act. Renaud Laplanche.
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