LoanMe Has Stopped Originating Business Loans
At least two public-facing employees of LoanMe have stated that the company has stopped originating business loans. Both believe that this is permanent.
The news may seem rather abrupt given that NextPoint Financial, a new publicly traded SPAC, just completed its acquisition of LoanMe less than a year ago. NextPoint apparently had second thoughts because in March it announced that it may have overpaid for LoanMe after reviewing its financial calculations. It stated that it would commence a review of the matter and report back. No determination to that end, if one were made, was subsequently announced.
NextPoint has since delayed filings of its year-end 2021 and Q1 2022 statements on the basis that it had not yet been able to finalize the books for LoanMe and another newly acquired subsidiary named Community Tax LLC. In doing so, it did not suggest that anything was awry.
Separately, however, LoanMe sued a loan servicing company in Delaware Superior Court on May 9th under seal for allegedly breaching a contract. The case was unsealed on June 10th. Three days later, two LoanMe employees say that they received notice that the company was shuttering.
The Senior National Accounts Manager wrote on social media, “yes, LoanMe is permanently closing. The powers that be at our parent holding company, NextPoint Financial, decided it was time to pull the plug.”Last modified: June 16, 2022