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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.

For individual investors who are residents of Alaska, Idaho, Missouri, Nevada, New Hampshire, Virginia and Washington, investors must either (1) have an annual gross income of at least $70,000 and a net worth (exclusive of home, home furnishings, and automobile) of at least $70,000 or (2) have a net worth (determined with the same exclusions) of at least $250,000. 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 automobile.

For individual investors who are residents of California, investors who purchase $2,500 or less in Notes, the investment must not exceed 10% of the investor’s net worth. To purchase more than $2,500 of Notes, a California investor member’s investment must not exceed 10% of his or her net worth, and either (1) the investor member must have had a minimum gross income of $85,000 during the last tax year and will have (based on a good faith belief) minimum gross income of $85,000 during the current tax year; or (2) the investor member must have a minimum net worth (exclusive of homes, home furnishings, and automobiles) of $200,000. Assets included in the computation of net worth shall be valued at not more than fair market value.

For individual investors who are residents of Maine, the Maine Office of Securities recommends that an investor’s aggregate investment in Notes and similar offerings 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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