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Who can invest on Prosper?

Individual investors must be United States residents who are 18 years of age or older, with a valid Social Security number and checking or savings account. Institutional investors who wish to purchase notes on the fractional marketplace must be based in the United States with a valid Taxpayer Identification Number. It may be possible for institutional investors from outside the US to purchase whole loans. Please contact institutions@prosper.com for more information.

Individual investors may also be required to meet suitability requirements established by their state of residence.

Individual investors who are residents of Alaska, Idaho, Missouri, Nevada, New Hampshire, Oregon, Virginia or Washington must meet one or more of the following suitability requirements: (1) have an annual gross income of at least $80,000 and a net worth (exclusive of home, home furnishings, and automobiles) of at least $80,000 or (2) have a net worth (determined with the same exclusions) of at least $280,000. In addition, no investor located in these states may purchase Notes in an amount in excess of 10% of the investor’s determined net worth, exclusive of home, home furnishings, and automobiles.

Individual investors who are residents of California must meet one or more of the following requirements: (1) have had an annual gross income of at least $85,000 during the last tax year and have (based on a good faith belief) an annual gross income of at least $85,000 for the current tax year; (2) have a net worth of at least $200,000 (or $300,000 together with the investor’s spouse); or (3) purchase $2,500 or less in Notes. In each case, the total amount of Notes purchased by an investor who is a resident of California cannot exceed 10% of the investor’s net worth.

For individual investors who are residents of Maine, Missouri, or Oregon, the Maine Office of Securities recommends, and each of the Office of the Missouri Secretary of State, Securities Division and the Oregon Division of Finance and Corporate Securities requires, as applicable, that an investor's aggregate investment in this offering and similar offerings by Prosper and Prosper's affiliates not exceed 10% of the investor's liquid net worth. For this purpose, "liquid net worth" is defined as that portion of net worth that consists of cash, cash equivalents and readily marketable securities.

For purposes of these suitability requirements, an investor and his or her spouse are considered to be a single person. In addition, the following definitions apply:

  • Annual gross income means the total amount of money you earn each year, before deducting any amounts for taxes, insurance, retirement contributions, or any other payment or expenses.
  • Net worth means the total value of all your assets, minus the total value of all your liabilities. The value of an asset is equal to the price at which you could reasonably expect to sell it. In calculating net worth, an investor should only include assets that are liquid, meaning assets that consist of cash or something that could be quickly and easily converted into cash, such as a publicly-traded stock. An investor shouldn’t include any illiquid assets, such as homes, home furnishings, or cars.
  • Net investment means the principal amount of Notes purchased, minus principal payments received on the Notes.

Please refer to the Prospectus for additional information.

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