The site is called Prosper. Prosper connects people who are looking to borrow money with people all over willing to loan them money in increments as little as $50. Prosper has helped thousands of borrowers raise nearly $200 million dollars in the past few years.

They essentially cut the banks out of the middle and let average Joe’s and Jane’s lend directly to borrowers earning them more interest then they would otherwise find through money market funds, savings accounts or CDs. Once loans are fully funded bidding ensues and the interest rate charged on the loan falls. Competition for your loan actually helps you to lower the interest rate!

For example, the borrower behind the title “OOPS–I lost a leg“, rocket20229 in Virginia, has already raised the $25,000 they sought and the interest rate that started out at 16.17%, has been bid down to 12.9% with 4 days left for more wannabe lenders to jump in drive the rate down further.

There’s obviously no guarantee that a borrower will get the loan they’re after funded, but it’s worth looking into as an alternative to going to a bank or credit union. Especially if you have high interest credit card debt.

Couple of other points worth mentioning are:

1) you will remain completely anonymous to the lenders and others reviewing your request. Only Prosper has your personal information.

2) Prosper handles all paperwork, funding of the loan (i.e. one lump some), and receiving your 36 monthly payments. So it’s easy as apple pie.

Patriot Express is a streamlined loan product based on the agency’s highly successful SBA Express Program, but with enhanced guaranty and interest rate characteristics.

Patriot Express Loan Program Details:

Whose eligible?

Patriot Express loans are available to military veterans, service-disabled veterans, service members leaving active duty, Reservists and National Guard members, current spouses of any of the above, spouses of active duty members, and the widowed spouse of a service member who died during service, or of a service-connected disability.

What can the loan be used for?

The Patriot Express Pilot Loan can be used for most business purposes.How much can I borrow?

Loan amounts can be up to $500,000 (although the average is currently running close to $100,000) and qualify for SBA’s maximum guaranty of up to 85 percent for loans of $150,000 or less and up to 75 percent for loans over $150,000.

What do the terms of the loan look like compared with a standard bank loan?

Interest rate maximums for Patriot Express loans are the same as those for regular SBA 7(a) loans: a maximum of prime + 2.25 percent for maturities under seven years; prime + 2.75 percent for seven years or more. Interest rates can be higher by two percent for loans of $25,000 or less; and one percent for loans between $25,000 and $50,000.

Where can I get more information?

Details on the initiative can be found at http://www.sba.gov/patriotexpress.