SOFI Expands Lending: Can Small Business Loans Boost Growth?

SoFi Technologies, Inc. SOFI is expanding its “everything app” with the launch of SoFi Small Business Loans, giving entrepreneurs access to fixed loans from $2,500-$250,000. The product targets business owners who need capital for equipment, inventory, payroll or staffing, with eligibility checks c…

SoFi Technologies, Inc. SOFI is expanding its “everything app” with the launch of SoFi Small Business Loans, giving entrepreneurs access to fixed loans from $2,500-$250,000. The product targets business owners who need capital for equipment, inventory, payroll or staffing, with eligibility checks completed in minutes and funding available as soon as 24 hours after approval.

The move aligns with SoFi’s broader push to widen its lending reach. In the first quarter of 2026, SoFi reported record loan originations of $12.2 billion, while its lending segment delivered $629 million in adjusted net revenues, up 53% year over year, with a 61% contribution margin. That performance provides the company with a strong base as it enters the small business lending.

Small business loans could also help SoFi deepen customer relationships. The company ended the first quarter of 2026 with 14.7 million members and 22.2 million products after adding 1.1 million members and 1.8 million products in the quarter. Its cross-buy rate reached 43%, indicating that more users are taking multiple products.

Pricing may be one of the easier selling points. SoFi said that the loans will have no application fee, no origination fee and no prepayment penalty. For business owners in industries like construction, healthcare and professional services, predictable payments can make planning easier when cash flow is uneven.

The key question is credit risk. Management mentioned credit performance remains in line with expectations, and its first-quarter 2026 personal loan borrowers had a weighted average income of $154,000 and FICO score of 745. Small business lending can be less predictable, but if SoFi keeps underwriting tight, the new product could add growth without stretching the balance sheet.

How Are Other Competitors Faring?

Upstart UPST operates an AI-driven lending marketplace connecting borrowers with bank and credit union partners for personal loans, debt consolidation, home-equity and credit-line products. In firs-quarter 2026, Upstart originated 425,356 loans, totaling about $3.4 billion, up 77% and 61% year over year, respectively, while more than 90% of loans were fully automated.

Happen, Inc. HAPN, formerly LendingClub, operates Happen Bank, a digital-first bank offering personal loans, debt consolidation, joint applications, creditor-payment options, rate comparison and online repayment. In first-quarter 2026, it generated $2.7 billion in loan originations, up 31% year over year and reported that more than 90% automation for issued consumer loans.

SOFI’s Price Performance, Valuation, and Estimates

Shares of SOFI have gained 13.1% in the past three months, outperforming the broader industry but underperforming the S&P 500 Index.

From a valuation standpoint, SOFI trades at a forward price-to-earnings ratio of 25.85X, well above the industry’s 9.73X. It carries a Value Score of F.

SOFI’s estimates have decreased by a cent over the past week. The Zacks Consensus Estimate for full-year 2026 EPS is pegged at 59 cents.

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.

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