📅 February 19 - United States | While traditional financing remains slow and bureaucratic, a fintech company aims to change the game. Newity announced an $11 million strategic funding round led by CMT Digital to explore bringing small business loans on-chain.
📖Founded in 2020 during the height of the pandemic by David Cody and Luke LaHaie, Newity began by helping businesses access the PPP program. After its closure in 2021, it pivoted to SBA 7(a) loans and growth credit.
Although it is not a direct lender to the SBA, it acts as a technology and operational provider for participating banks such as Northeast Bank, which ultimately originate and approve the loans.
Since its launch, the firm has processed more than $12 billion for 125,000 small businesses, with a historical average ticket of $118,800 and a maximum of $350,000.
Its competitive advantage lies in a 100% online process and an AI-powered underwriting platform that analyzes hundreds of variables—from credit history to tax documents—enabling pre-approval in less than 10 minutes and funding in around 21 days, compared to 12 weeks or more for the traditional system.
The round —structured as SAFE and closing in December 2025— marks its first capital raise. The company is now exploring how to tokenize or structure these loans on the blockchain, with announcements expected in the first quarter.
Topic Opinion:
Bringing SBA-backed loans to an on-chain environment with transparency and secondary liquidity could open up a new asset class for crypto and institutional investors.
💬 Would you invest in blockchain-structured small business loans?
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