Able's team, courtesy photo.

Able’s team, courtesy photo.

Able Lending announced Tuesday that it has secured $100 million in debt financing from Community Investment Management to provide low-cost loans to small businesses.

The Austin-based online lender reports that the money will be used to fund approximately 500 small businesses in the United States. To qualify for a loan, the businesses need to be operating for at least one year with at lest $100,000 in revenue. Able’s loans have a unique structure built on a collaborative lending platform. The borrowers lower their interest rate by raising part of the loan from friends and family, who act as co-lenders with Able. The loans range in size from $25,000 to up to 41 million with rates starting at 8 percent.

“We are excited about CIM’s investment so that we can fund more deserving small businesses,” Able’s CEO and Cofounder Will Davis said in a news release. “During a time when investors’ confidence in alternative lending has plunged, this investment is a vote of confidence in our loan model and our team.”

able_logoAble, founded in 2014, lends to consumer products, tech, and main street businesses of all types. Loan recipients look to Able for working capital and to purchase inventory, open a new location, hire employees, invest in marketing, or as a bridge round to retain more equity. Able also helps small businesses get out of high-interest, short-term debt by refinancing cash advances and credit cards, which saves entrepreneurs $5,000 a month on average.

Silicon Hills News did this profile on the company in 2014.