Online Crowdfunding: Where Does The Money Go? –

LITTLE ROCK, Ark. –With the click of a mouse, you can donate cash to the cause of your choice as crowd funding continues to expand online. Anyone can make a page asking for money. So where do the donated dollars really go? Some may have good intentions, while others may be taking advantage of generosity. Everyone has a cause, whether its opening your dream brewery like Stones Throw in Little Rock or like the Wilson’s, just trying to get back on their feet after losing everything in a house fire this month. Not everyone has the cash to make their dreams or needs a reality, so they are turning to strangers and crowd funding. “People like we said we never even knew that are leading us a hand,” said Tara and Ben Wilson. With the click of a mouse, they can set up a portal for people to help their cause, big or small, by going to a website. It was a tap room for Stones Throw. “200 and 70 something of our closets friends decided they wanted to invest in us and they all did and it was just a life saver,” said Theron Cash of Stones Throw. The Wilsons searched for stability after the fire.
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Online lender Prosper to partner community banks to boost offerings – Yahoo Finance

The partnership will allow more than 160 lenders in 13 U.S. states to offer unsecured loans to customers, Prosper’s Chief Executive Aaron Vermut wrote in a blog on the company’s website. ( ) Community banks, which focus on small businesses and farm lending, comprise 96.8 percent of all banks in the United States, said Vermut, a former co-head of prime services at Wells Fargo Prime Services LLC. Peer-to-peer lenders such as LendingClub Corp and Prosper make money by charging a fee for connecting lenders with borrowers such as small businesses or individuals looking for personal loans. They match the borrower and lender based on the time duration and assume no credit risk. Prosper has facilitated more than $2 billion in loans since its launch in 2006. WIB provides community banks with networking opportunities, educational programs and access to new services.
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