Social-lending sites pair willing lenders with cash-strapped borrowers
Credit remains as tight as springtime sinuses. But rather than wait for the Federal Reserve’s maneuvers to get things flowing again, antsy borrowers are asking their neighbors for a little 
help online, thanks to a rash of so-called social- lending Web sites. These operators charge fees to broker and service the loans–about 1% from the lender and 2% to 4% from the borrower–as well as penalties for late payments to cover the costs of chasing deadbeats.
While still tiny, the social-lending business is gaining serious momentum. The dollar amount of outstanding loans jumped 41.7% in 2008 to $102 million, according to Jim Bruene, founder of Seattle-based NetBanker, which tracks the online finance world. Bruene figures that figure could hit $1 billion by 2013. Read more:
Technorati Tags: social lending, Jim Bruene, NetBanker, Prosper.com, GreenNote, Lending Club, U.S. Securities and Exchange Commission, Chris Larsen, GlobeFunder Ventures, James Van Dyke, Javelin Strategy & Research, NCET, Nevada’s Center for Entrepreneurship and Technology, Melanie Lender, Forbes.com
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