Prosper on Hold; SEC Process Cited

Prosper Marketplace Inc. has again stopped allowing people to request loans on its Web site, which facilitates loans between individuals.

The San Francisco company had stopped facilitating loans in October as part of the process of registering with the Securities and Exchange Commission to create a secondary market for debt originated through its Web site, but it resumed working with California lenders last month after reaching an agreement with the state's regulators.

Prosper posted a notice on its Web site Saturday that it had "voluntarily shut down" loan facilitations "to complete our SEC approval for a nationwide peer-to-peer lending platform."

The notice said Prosper hoped to return to full service "in the … not too distant future."

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