Fundation Group, a New York-based online small-business lender, announced Tuesday that it has secured a $100 million credit facility from Goldman Sachs.
The digital lending firm said that it plans to use the asset-backed credit facility to fund new loans. Fundation retains the vast majority of the loans it originates on its own balance sheet.
"This transaction further strengthens our balance sheet and reinforces our unique position in the small business lending marketplace," Fundation Chief Executive Sam Graziano said in a press release.
Fundation's strategy is focused on finding small-business borrowers through partnerships with banks and other firms. Regions Financial in Birmingham, Ala., is among the banks that refer potential customers to Fundation.
The company, which was founded in 2011, offers small-business loans of $20,000 to $500,000, with repayment terms that range from one year to four years. The loans carry annual percentage rates from 7.99% to 29.99%, according to Fundation's website.