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SoFi Technologies SMB Lending: Can New Loans Unlock Growth?
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Key Takeaways
SoFi launched SMB loans in Q2 2026, targeting underserved entrepreneurs with fast funding and pricing.
A $3 billion Basepoint deal and another partnership provide capacity as SMB loan volumes scale.
SoFi may eventually retain SMB loans, creating a path to recurring net interest income.
SoFi Technologies (SOFI - Free Report) is widening its lending reach with small-business loans. The company launched SMB loans in the second quarter of 2026, targeting entrepreneurs who are often underserved by banks and charged high rates by newer lenders, according to management. SoFi is positioning the product around quick eligibility decisions, fast funding and competitive pricing through its digital-first platform.
The initial strategy is capital-light. SoFi said it is originating SMB loans through its Loan Platform Business rather than placing them on its balance sheet. Management disclosed a three-year, $3 billion agreement with Basepoint Capital and another partnership worth several hundred million dollars, providing capacity as volumes begin to scale.
That approach builds on momentum visible in the Loan Platform Business. In the second quarter, the platform generated $143.3 million of adjusted net revenues, supported mainly by $3.1 billion of personal loans originated for third parties and referrals. Expanding the platform into SMB lending gives SoFi another source of fee income while broadening the asset choices offered to capital partners.
Management said SMB application demand was considerable and expects the economics to be similar to or slightly better than those of its existing Loan Platform Business levels. Over time, SoFi may also retain some SMB loans on its balance sheet, creating a path to recurring net interest income.
The launch also comes during a strong second quarter for lending. Total originations reached a record $14.8 billion, up 69% year over year. Personal loans totaled $10.7 billion, followed by student loans at $2.7 billion and home loans at $1.4 billion, indicating firm member demand across SoFi’s core lending products.
How Are Competitors Faring?
Capital One (COF - Free Report) competes with SoFi across consumer banking, lending and deposits while serving small businesses through financing solutions. It offers business lines of credit, real estate term loans and SBA 7(a), 504 and Express loans and lines for expansion and other financing needs. Real estate loans and business lines of credit are available up to $5 million.
American Express (AXP - Free Report) competes with SoFi in consumer financial services and extends its reach into small-business financing through its Business Line of Credit. The product gives businesses flexible access to capital through installment draws, transparent monthly fees and no application or origination fees. AXP offers business lines of credit ranging from $2,000 to $250,000.
SOFI’s Price Performance, Valuation and Estimates
Shares of SOFI have decreased 12.2% in the past three months, underperforming the broader industry and the S&P 500 Index.
Image Source: Zacks Investment Research
From a valuation standpoint, SOFI trades at a forward price-to-earnings ratio of 20.61X, well above the industry’s 15.45X. It carries a Value Score of F.
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for full-year 2026 EPS remained unchanged at 60 cents over the past two months.
View the Zacks #1 Rank List
Image: Shutterstock
SoFi Technologies SMB Lending: Can New Loans Unlock Growth?
Key Takeaways
SoFi Technologies (SOFI - Free Report) is widening its lending reach with small-business loans. The company launched SMB loans in the second quarter of 2026, targeting entrepreneurs who are often underserved by banks and charged high rates by newer lenders, according to management. SoFi is positioning the product around quick eligibility decisions, fast funding and competitive pricing through its digital-first platform.
The initial strategy is capital-light. SoFi said it is originating SMB loans through its Loan Platform Business rather than placing them on its balance sheet. Management disclosed a three-year, $3 billion agreement with Basepoint Capital and another partnership worth several hundred million dollars, providing capacity as volumes begin to scale.
That approach builds on momentum visible in the Loan Platform Business. In the second quarter, the platform generated $143.3 million of adjusted net revenues, supported mainly by $3.1 billion of personal loans originated for third parties and referrals. Expanding the platform into SMB lending gives SoFi another source of fee income while broadening the asset choices offered to capital partners.
Management said SMB application demand was considerable and expects the economics to be similar to or slightly better than those of its existing Loan Platform Business levels. Over time, SoFi may also retain some SMB loans on its balance sheet, creating a path to recurring net interest income.
The launch also comes during a strong second quarter for lending. Total originations reached a record $14.8 billion, up 69% year over year. Personal loans totaled $10.7 billion, followed by student loans at $2.7 billion and home loans at $1.4 billion, indicating firm member demand across SoFi’s core lending products.
How Are Competitors Faring?
Capital One (COF - Free Report) competes with SoFi across consumer banking, lending and deposits while serving small businesses through financing solutions. It offers business lines of credit, real estate term loans and SBA 7(a), 504 and Express loans and lines for expansion and other financing needs. Real estate loans and business lines of credit are available up to $5 million.
American Express (AXP - Free Report) competes with SoFi in consumer financial services and extends its reach into small-business financing through its Business Line of Credit. The product gives businesses flexible access to capital through installment draws, transparent monthly fees and no application or origination fees. AXP offers business lines of credit ranging from $2,000 to $250,000.
SOFI’s Price Performance, Valuation and Estimates
Shares of SOFI have decreased 12.2% in the past three months, underperforming the broader industry and the S&P 500 Index.
Image Source: Zacks Investment Research
From a valuation standpoint, SOFI trades at a forward price-to-earnings ratio of 20.61X, well above the industry’s 15.45X. It carries a Value Score of F.
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for full-year 2026 EPS remained unchanged at 60 cents over the past two months.
Image Source: Zacks Investment Research
SOFI stock currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.