What happens if Lending Loop goes out of business?

As a Lender on Lending Loop, you will hold one or more notes issued by Loop Funding Inc. If the Lending Loop platform were to shut down, your agreements with Loop Funding would remain in place and would continue to be serviced in the unlikely event that the platform were to fail or become insolvent.

In the very unlikely event that Loop Funding were to become insolvent, we would attempt to transfer the loan servicing obligations of Loop Funding to a third party backup servicer so that you could continue receiving payments on any notes that you hold. Please note that if Loop Funding were to become subject to a bankruptcy or similar proceeding, you as a noteholder would have a general unsecured claim against Loop Funding that may or may not be limited in recovery to Borrower payments in respect of the Borrower loan corresponding to your note. 

Any money in your Lending Loop account is fully protected as it is held for you in trust in a dedicated account at a Canadian Chartered Bank. This means that all of your funds are held under the protection of the bank. In the rare case that Lending Loop did become insolvent, your funds would be returned to you by the bank within days.