A common question that peer-to-peer lending investors have is whether or not their state permits them to invest in or borrow using peer-to-peer loans. If you want to borrow from Lending Club, it doesn’t matter what state you live in. There are a number of states whose regulatory requirements prevent investors from investing in peer-to-peer loans. Both Lending Club and it’s primary competitor, Prosper.com, have a different set of eligible states.
If you live in one of these states, you can direct invest in Lending Club: California, Colorado, Connecticut, Delaware, Florida, Georgia, Hawaii, Idaho, Illinois, Kentucky, Louisiana, Maine, Minnesota, Missouri, Mississippi, Montana, New Hampshire, Nevada, New York, Rhode Island, South Carolina, South Dakota, Utah, Virginia, Washington, Wisconsin, West Virginia, and Wyoming.
If you don’t live in any of these states, you still might be allowed to invest in Lending Club loans indirectly. You can open an account with Lending Club’s secondary market, Foliofn, and buy notes held by other investors. If you live in one of these states, you can buy notes on Foliofn, but not directly from Lending Club: Alabama, Alaska, Arizona, Arkansas, Indiana, Iowa, Massachusetts, Michigan, Nebraska, New Jersey, New Mexico, North Carolina, North Dakota, Oklahoma, Pennsylvania, Tennessee, and Texas.