IOU Financial, an online lender to small businesses, entered into a $50 million credit facility with MidCap Financial. The facility will have an initial commitment amount of $25 million and will be expandable to $50 million at IOU’s request and the lender’s acceptance.

“The credit facility will not only increase the availability of capital to support our growth, but also lowers our funding cost of that capital. I am very pleased to have concluded this agreement with MidCap, achieving an important strategic objective for our management team, and further positioning the company for continued growth,” said Phil Marleau, CEO of IOU Financial.