StreetShares Reports $2.8M Loss on Just $277,000 in Revenue For Last Six-Month Period
StreetShares, an online small business lender that is self-described as proudly veteran-run, published their most recent financial statements with the SEC earlier this week. For the six-month period ending December 31st, 2016, StreetShares recorded a $2.8 million loss on $277,883 in revenue. Over the same period in the prior year, they recorded a $1.35 million loss on $145,019 in revenue. To-date, the lender has issued $20 million in loans since they first began in July 2014.
StreetShares has so far charged off 23 loans for a combined principal balance of $380,804. Charge-off determinations are made after 150 days of delinquency.
The company made history last year by becoming the first lender in the US to be approved by the SEC to use funds from public investors to back loans to small businesses. This was done through Regulation A+ of the Jumpstart Our Business Startups (JOBS) Act. Reg A+ investors make up $656,675 of StreetShares’ liabilities on the balance sheet.
StreetShares currently makes loans to small businesses between $2,000 to $500,000 for terms of three months to three years.
The company also spent more than 5x their revenue on payroll and payroll tax for the six-month period and more than 3x their revenue on marketing expenses.
Earlier this month, StreetShares announced a partnership with Nor-Cal FDC “to assist small business and veteran business owners in obtaining funding needed to win new opportunities.”
In the release, StreetShares CEO Mark Rockefeller said, “we’re eager to provide veteran-owned small businesses with the funding solutions they need to grow.”Last modified: May 7, 2017