SoFi Blog

Jennifer Beall, Founder & CEO of Tot Squad, does not have the average startup story.  As she puts it, “Everyone else wanted to start the next Facebook, while I was working on cleaning baby poop off of car seats.”  But Jennifer, Kellogg MBA ’10 and Duke ’05, and her business are about more than just stroller and car seat cleaning/installation.   She and Tot Squad are on a mission to make moms happier, kids safer and the world a better place.

Transaction Lowers Loan Rates, Provides Path to Expand Consumer Lending

San Francisco, CA – Social Finance, LLC (SoFi), a leader in marketplace lending, today announced it has closed a $251 million securitization of refinanced student loans for graduate borrowers.  S&P and DBRS rated the senior notes ‘A’, the first such S&P rating for a marketplace lender securitization.

“This securitization allows us to significantly lower the cost of borrowing for our members,” said SoFi’s Chief Financial Officer, Nino Fanlo.  “Because the rating was based on the caliber of SoFi’s customers and approach to consumer underwriting, it allows us to expand our school footprint and build a roadmap for other types of lending, such as personal loans and mortgages.”

In December 2013, SoFi issued the first securitization in the category with $151 million in senior notes backed by $168 million in collateral. The $251 million July 2014 transaction is backed by $278 million in collateral.  Both rounds included retail and institutional investors, with over 30 top tier institutional investors participating in July. Morgan Stanley served as the structuring agent and joined Goldman Sachs in distributing the senior notes.  SoFi Securities assisted in the transaction acting as a placement agent with respect to the senior notes and equity interests.

“We’re delighted to invest in high quality customers like SoFi borrowers,” said Anup Agarwal, Head of Mortgages and Structured Products, Western Asset Management Company (WAMCO.)  “We and our investors look forward to doing more business with SoFi as their product offerings expand.”

The securitization comes on the back of record growth at SoFi.  In June, the company funded over $100 million in student loan refinancing- a monthly record.  SoFi has also begun to offer personal loans and mortgages. SoFi has originated over $700 million in loans to date, and counts over 8,000 borrowers in its community.

About SoFi

For the first time in history, accomplished graduates are unable to attain many of life’s milestones- like starting a company, purchasing a home, or buying a car- because of the massive student debt burden. SoFi offers student loan refinancing, mortgages, and personal loans to highly qualified graduates. To date we’ve issued over $730M in loans to more than 8,000 members.  Our community-based model offers borrowers unique benefits like career coaching, entrepreneurship support, and unemployment protection.  We offer individual and institutional investors opportunities to invest in these bright minds and earn compelling rates of return. For more information, visit SoFi.com.

Lender’s Entrepreneur Program Supports Starting Businesses with Student Loan Deferment and Business Coaching

San Francisco, CA – Social Finance, LLC (SoFi.com), a leader in peer-to-peer lending, today announced that CleanBeeBaby, an eco-friendly cleaning service for baby and toddler strollers and car seats, has been named the SoFi Entrepreneur Program “Startup of the Year.”  As a direct result of being a member of SoFi’s Entrepreneur Program, Jennifer Beall, the founder and CEO of CleanBeeBaby, has received more than $150,000 in financing for the company from the SoFi community, led by investor Michael Kane.

“As a SoFi borrower and part of its Entrepreneur Program, I have access to a network of people literally and figuratively invested in the success of my company and its financial future,” said Jennifer Beall, Founder and CEO of CleanBeeBaby. “SoFi connected me with outstanding people who have helped my business grow in various ways from making investments to providing mentorship. We are proof of what SoFi’s amazing community is able to create together.”

CleanBeeBaby has raised almost $600,000 since launching in 2011, with plans to raise another half a million before the end of the year through connections directly made within the SoFi community. Additionally, as a SoFi borrower, Beall has saved more than $5,000 refinancing her student loans through SoFi and was able to defer payments while she got her business off the ground.

“Student loan debt shouldn’t stop entrepreneurs from developing and raising capital for their companies,” said Mike Cagney, CEO of SoFi. “Our Entrepreneur Program differs from traditional incubators by not only sourcing capital, but also providing resources like business development support, valuable mentoring and networking opportunities – all without founders sacrificing equity.”

Benefits of the SoFi Entrepreneur Program include up to six months forbearance on loans, access to SoFi’s accredited investors, and professional mentorship. Additionally, career counseling resources are available to SoFi entrepreneurs looking to grow their teams, in fact, Beall recently used this service to help source a vice president of operations for CleanBeeBaby.

To date, SoFi has accepted 25 entrepreneurs into its Entrepreneur Program.  For more information or to apply to SoFi’s Entrepreneur Program visit sofi.com/entrepreneur-program/.

About SoFi

For the first time in history, accomplished graduates are unable to attain many of life’s milestones- like starting a company, purchasing a home, or buying a car- because of the massive student debt burden. SoFi offers student loan refinancing, home loans, and personal loans to highly qualified graduates. To date we’ve issued over $730M in loans to more than 8,000 members.  Our community-based model offers borrowers unique benefits like career coaching, entrepreneurship support, and unemployment protection.  We offer individual and institutional investors opportunities to invest in these bright minds and earn compelling rates of return. For more information, visit SoFi.com.

About CleanBeeBaby

CleanBeeBaby is an eco-friendly stroller and car seat cleaning enterprise that provides services in partnership with retail stores while you wait.  The first of its kind in the world, the CleanBeeBaby mobile unit can be found at one of 50+ retail partners in Southern California and New York City, or is available for private house calls.  CleanBeeBaby technicians are not only expert cleaners, but are nationally certified to install car seats and ensure the safety of our most precious cargo.  To arrange an appointment with CleanBeeBaby, please visit www.cleanbeebaby.com.