What's happening with the folks over at Prosper.com?

May 20, 12:17 PMSF Personal Finance ExaminerBarbara Bryn Klare

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Prosper.com, a leading peer-to-peer lending site, headquartered in San Francisco (Prosper Marketplace, Inc., 111 Sutter Street, 22nd Floor, San Francisco, CA 94104) opened its doors briefly in April 2009, then went into its second quiet period, pending the completion of its SEC registration. Prosper, also known as Prosper Loans Marketplace, has discontinued its California intrastate lending and is not able to accept new lender or borrower registrations or any new commitments from existing lenders at this time. The second waiting period is undefined and frustrating, but the end result should be worth it: a nationwide peer-to-peer lending platform.

What does this mean to you? Peer-to-peer lending means you can be "The Bank" and make loans to others in your community, diversifying your portfolio and adding to your net worth. If the network goes national, the playing field really widens. For those of you who need a loan, you can list your need, your personal story, endorsements and more, with national exposure. Even with more exposure, the process is much more personal than a typical individual bank loan application. Many people who ordinarily would not be able to get a loan can through Prosper.

Ben Franklin said, "Neither a borrower nor a lender be," but that was before lending became democratic.