Silicon Valley Bank delivered a $100 million warehouse facility to Stilt, a provider of financial services for immigrants. The debt facility will be used for lending to borrowers and checking account holders. Stilt has raised a total of $225 million in debt facilities for lending to its customers.
The company also launched its new checking account offering. Powered by Evolve Bank & Trust, Stilt’s checking accounts are designed to meet the needs of immigrants and people without Social Security numbers. Stilt’s checking accounts include spot-rate remittance, the ability to build credit, and cashback on certain services. Customers can also get a pre-approved loan transferred to their account.
“This debt facility will be instrumental in helping Stilt reach north of $350 million in annualized loan volume,” Rohit Mittal, co-founder and CEO of Stilt, said. “We are seeing a significant increase in loan applications from immigrants and thin-file customers who are facing even more financial difficulty and uncertainty due to COVID-19. So it is vital that we provide a holistic set of products — from bank accounts to loans and remittance — to meet the growing needs of some of our most important, yet underserved populations.”
Immigrants are particularly negatively affected by COVID-19. Families of immigrants and international students are impacted in their home countries due to lockdowns and reduced work hours, so they need financial assistance to afford basic necessities. Stilt allows immigrants to remit money back to family in their home countries while also building credit in the US.
“We are pleased to support Stilt as the team expands its portfolio of financial services products for immigrants and individuals without credit,” Nick Christian, head of specialty finance at Silicon Valley Bank, said. “Stilt is in a strong financial position and we have been impressed with the company’s organic customer acquisition. We look forward to expanding our relationship as the company matures to its next phase of growth.”
