S.F.-Based Prosper Voluntarily Shuts Down While Awaiting SEC Approval

San Francisco -- Prosper, on online people-to-people lending marketplace co-founded by E-Loan co-founder Chris Larsen, said that it has voluntarily shut down its operations while it seeks regulatory approval for its platform from the Securities and Exchange Commission. "Due to regulatory concerns, and in the interest of working toward getting our registration statement effective as soon as possible, we are discontinuing our California intrastate offering at this time," the company said on its web site. The news comes days after Prosper announced that it had resumed business following six months while attempting to gain SEC approval. The company said that it won't accept any new loans or commitments while in what it is calling a "quiet period," though borrowers with existing loans will be unaffected. "We want to assure you that Prosper is looking forward to being able to offer a transparent, durable and participatory lending institution very soon," the company said. Prosper has raised more than $40 million since its inception in 2006.
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